Chime Financial to Acquire Banking Partner Stride Bank for $590 Million

Chime Financial (NASDAQ:CHYM) announced a definitive agreement to acquire its long-time partner, Stride Bank, for $590 million in cash, a strategic move that provides the financial technology company with a national bank charter. Shares of Chime rose 6% in after-hours trading Tuesday following the news.

A Strategic Acquisition

The deal values Stride Bank at approximately 1.5 times its tangible book value, according to the announcement. Chime plans to fund the purchase entirely with cash from its balance sheet, requiring no additional capital. Upon closing, Stride Bank, which has served as Chime's banking partner for over seven years, will be renamed Chime Bank and operate as a wholly owned subsidiary.

By acquiring the Enid, Oklahoma-based bank founded in 1913, Chime gains an established banking infrastructure and the regulatory foundation to operate independently, reducing its reliance on third-party sponsor banks. The transaction has been unanimously approved by the boards of both companies.

Financial Impact and Outlook

Chime stated the acquisition is expected to be immediately accretive to its earnings per share upon closing. The company projects it will realize more than $100 million in net synergies, driven by:

• Savings on sponsor bank fees
• Expansion of its own lending products
• A lower overall cost of funds

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Coinciding with the deal, Chime also raised its financial guidance. For the third quarter, the company now expects:

• Revenue: $705 million, representing approximately 30% year-over-year growth.
• Adjusted EBITDA: $117 million to $120 million.

For the full year, Chime anticipates revenue between $2.76 billion and $2.77 billion and adjusted EBITDA of $481 million to $489 million.

Path to Completion

The acquisition is subject to customary closing conditions, including approvals from the Office of the Comptroller of the Currency (OCC) and the Board of Governors of the Federal Reserve System. The companies expect the transaction to close in the first half of 2027.