Chime Financial reported that it has entered a definitive agreement to purchase Stride Bank for $590 million in cash, a move that sent the company's stock up about 6% in after-hours trading on Tuesday.
Stride Bank, a nationally chartered institution that has acted as Chime's sponsor bank partner for more than seven years, will be renamed Chime Bank once the deal closes and will operate as a wholly owned subsidiary of Chime.
Deal economics and expected benefits
Chime said the transaction is expected to be accretive to earnings per share immediately upon closing. The company anticipates realizing more than $100 million in net synergies. Those savings are projected to come from lower sponsor bank fees, expansion of Chime's lending product set, and a reduced cost of funds relative to its current arrangements.
The purchase price equates to roughly 1.5x tangible book value for Stride Bank. Chime plans to pay for the acquisition from cash on its balance sheet and stated that no incremental capital contribution is anticipated to complete the transaction.
Strategic assets and customer base
Founded in 1913 and headquartered in Enid, Oklahoma, Stride brings an established banking infrastructure and a national bank charter to Chime. The move would internalize Chime's bank partner relationship after more than seven years of collaboration. Chime currently serves more than 10 million active members.
Guidance and financial outlook
Alongside the acquisition announcement, Chime provided updated financial guidance. For the third quarter, the company raised its revenue projection to $705 million, representing year-over-year growth of approximately 30%, and expects adjusted EBITDA of $117 million to $120 million, implying an adjusted EBITDA margin of about 17%.
For the full year, Chime now forecasts revenue of $2.76 billion to $2.77 billion, representing year-over-year growth of roughly 26% to 27%, and adjusted EBITDA of $481 million to $489 million, corresponding to a margin range of 17% to 18%.
Timing and approvals
The transaction is anticipated to close in the first half of 2027, subject to customary closing conditions and regulatory approvals, specifically from the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System. The boards of directors of both companies have unanimously approved the deal.
Market reaction
Chime's shares advanced roughly 6% in after-hours trading on the news of the deal. The company emphasized that it will fund the acquisition with existing cash resources and does not expect to seek additional capital to complete the purchase.
Conclusion
The acquisition of Stride Bank would provide Chime with an in-house national bank charter and a legacy banking platform while aiming to lower certain costs tied to its bank sponsor relationship. The deal carries an explicit timeline tied to regulatory sign-offs and is positioned to be immediately accretive to earnings per share, according to Chime.