Chime Financial is buying Stride Bank, a 113-year-old Oklahoma lender, for $590 million in cash. The deal will turn the fintech company into a bank for the first time.
Chime Financial, Inc. Class A Common Stock, CHYM
Chime stock jumped 10% in after-hours trading on Tuesday following the announcement. The stock currently trades around $32.31, up roughly 20% from its $27 IPO price when it went public in June 2025.
Stride Bank will be rebranded as Chime Bank, N.A. and will operate as a wholly owned subsidiary after the deal closes.
Chime chose to buy Stride rather than apply for a de novo bank charter. The company said the acquisition offers “a faster and more proven path to full-stack ownership.”
Stride has been Chime’s banking partner for more than seven years, providing the infrastructure behind its checking accounts and other banking services.
The deal brings together Chime’s consumer technology and its proprietary ChimeCore platform with Stride’s national charter, deposit base, and compliance infrastructure.
Chime expects the acquisition to cut costs by eliminating sponsor bank fees and lowering funding costs. The company projects around $100 million in net synergies from the deal.
Chime also plans to keep its total assets below $10 billion following the acquisition. That threshold is the regulatory dividing line between community banks and larger institutions.
UBS raised its price target on CHYM to $31 from $28 after the announcement, though the firm kept its Neutral rating. The stock is already trading slightly above that new target.
Wolfe Research raised its price target to $32 and maintained an Outperform rating, following Chime’s second-quarter earnings beat and raised full-year guidance.
Loop Capital initiated coverage with a Buy rating and a $45 price target, pointing to features like early paycheck access and debit rewards as key differentiators.
Goldman Sachs flagged upward revisions in revenue and earnings per share estimates for Chime among a broader group of fintech companies.
Chime updated its full-year revenue guidance to between $2.76 billion and $2.77 billion. It expects adjusted EBITDA of between $481 million and $489 million.
Ahead of the deal, Chime laid off 10% of its workforce this summer as part of a broader reorganization. CEO Chris Britt said the move was aimed at building a leaner company using AI-driven teams.
Chime also said it is exploring the use of stablecoins in its consumer banking platform and has sought proposals for stablecoin wallet services.
The deal is expected to close in the first half of 2027, subject to regulatory approval. Chime currently has a market capitalization of around $12.23 billion.
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