Key facts
- Chime will acquire Stride Bank for $590 million in an all-cash deal.
- The acquisition is expected to close in the first half of 2027.
- Stride Bank, founded in 1913, provides consumer and commercial banking services.
- Chime aims to bring banking infrastructure in-house to expand its lending business.
- Chime's shares rose nearly 10% in extended trading following the announcement.
- Chime raised its full-year revenue growth forecast to between 26% and 27%.
Fintech company Chime announced on Tuesday its agreement to acquire nationally chartered Stride Bank for $590 million in an all-cash transaction. The move is intended to bring key banking infrastructure in-house and support the expansion of Chime's lending business.
Chime's shares saw a nearly 10% increase in extended trading following the announcement. The company's stock has already risen over 28% this year. The acquisition is projected to generate more than $100 million in net synergies and is anticipated to close in the first half of 2027.
Stride Bank, based in Enid, Oklahoma, was founded in 1913 and offers financial services including consumer and commercial banking. It has been a partner to Chime for over seven years. Chime stated that acquiring Stride Bank provides a faster and more proven route to full-stack ownership compared to obtaining a new bank charter.
Upon closing, Chime will manage Stride's balance sheet and intends to keep its assets below $10 billion for the foreseeable future. San Francisco-based Chime focuses on serving everyday Americans with banking products, attracting younger customers through its mobile-first offerings.
Additionally, Chime revised its full-year revenue forecast upwards, now expecting growth between 26% and 27%, an increase from its previous projection of 25% to 26%. Morgan Stanley served as the financial advisor for Chime, while Piper Sandler & Co advised Stride Bank.