Chime, the Nasdaq-listed US FinTech, will acquire Stride Bank, N.A., its long-standing banking partner, for $590m. The all-cash transaction will make Stride a wholly owned subsidiary of Chime and rename it Chime Bank, N.A. The deal is expected to close in the first half of 2027, subject to approval from the Office of the Comptroller of the Currency and the Federal Reserve Board. The boards of both companies have unanimously approved the transaction.
Chime will pay approximately 1.5 times Stride’s tangible book value and finance the acquisition from its existing balance sheet. The company expects the transaction to increase earnings per share following completion and generate more than $100m in net synergies. Savings are expected to come primarily from removing sponsor-bank fees and reducing funding costs. Chime also expects greater ownership of its lending operations to support growth.
The acquisition is intended to give Chime a faster route to controlling its own banking infrastructure than applying for a new bank charter . Following completion, Stride’s banking infrastructure will be integrated with ChimeCore , Chime’s proprietary technology platform. Chime expects the combination to reduce operational handoffs, bring data and decision-making closer together and accelerate compliant financial product development. The company plans to keep total assets below $10bn for the foreseeable future and consolidate its banking activities within Stride.
Chime now expects third-quarter revenue of $705m, representing year-on-year growth of approximately 30%, with adjusted EBITDA of between $117m and $120m. The quarter’s adjusted EBITDA margin is expected to be around 17%. For the full year, Chime expects revenue of between $2.76bn and $2.77bn, representing growth of approximately 26% to 27%. Adjusted EBITDA is forecast at between $481m and $489m, with a margin of 17% to 18%.
Chime offers consumer banking products across payments, deposits and lending and serves more than 10 million active members. Deposits held through Chime are currently insured by the FDIC through The Bancorp Bank, N.A. or Stride Bank, N.A. Stride was established in 1913, is headquartered in Enid, Oklahoma, and provides consumer and commercial banking, treasury management, mortgage and wealth management services. Chime CEO and co-founder Chris Britt said the acquisition will combine Chime’s brand and member relationships with Stride’s national charter and team. Stride chairman and CEO Brud Baker said the bank’s charter and experienced team will be central to the combined company’s future.