Chime Financial has agreed to acquire long-time banking partner Stride Bank in an all-cash transaction valued at $590 million, a move that would give the consumer fintech its own nationally chartered bank and more direct control over deposits, debit cards and lending infrastructure.
Stride, based in Enid, Oklahoma and founded in 1913, has provided banking services to Chime for more than seven years. After closing, the institution is expected to operate as Chime Bank, N.A., a wholly owned subsidiary, with current Stride chairman and chief executive Brud Baker remaining in charge. Chime plans to pay from cash already on its balance sheet and does not expect to raise additional capital. The price equals about 1.5 times Stride's tangible book value.
The company estimates more than $100 million in net synergies, driven by lower sponsor-bank fees, broader lending products and a lower cost of funds. Chime also intends to keep the bank's assets below $10 billion for the foreseeable future to preserve higher debit-card interchange rates under the Durbin Amendment exemption. The transaction is expected to close in the first half of 2027, subject to review by the Office of the Comptroller of the Currency and the Federal Reserve.
Alongside the announcement, Chime raised its 2026 outlook. Third-quarter revenue is now projected at $705 million, about 30% growth year over year, with adjusted EBITDA of $117 million to $120 million. Full-year revenue guidance moved to $2.76 billion to $2.77 billion, implying growth of about 26% to 27%, with adjusted EBITDA of $481 million to $489 million.
Investors reacted positively, with shares rising roughly 10% after hours and about 11% in premarket trading, and about 9% before the bell Wednesday. Morgan Stanley raised its price target to $40 from $39 with an Overweight rating, UBS raised its target to $31 from $28 with a Neutral rating, and Loop Capital initiated coverage with a Buy rating and a Street-high target of $45, implying nearly 40% upside from Tuesday's close of $32.31. Chief executive Chris Britt framed the purchase as a way to strengthen an existing model, and the deal is seen as part of a broader shift in which large consumer fintechs move from renting bank charters to owning them outright.
