Chime, the San Francisco-based financial technology company known for its no-fee mobile banking app, announced it will acquire nationally chartered Stride Bank in an all-cash deal worth $590 million. Shares of Chime jumped nearly 10% in extended trading following the announcement, adding to a stock that is already up more than 28% this year.
The deal, first detailed in a KSL.com report from Reuters, targets Central Service Corporation, the Enid, Oklahoma-based holding company behind Stride Bank, which was founded in 1913 and has served as Chime's primary sponsor bank for more than seven years. According to an SEC filing analysis relayed by Stock Titan, the purchase price works out to roughly 1.5 times Stride's tangible book value. Once the deal closes, Stride Bank will rebrand as Chime Bank, N.A., continuing under the leadership of chairman and CEO Brud Baker, as reported by American Banker.
Why Chime Wants to Own Its Own Bank
Per the KSL.com report, Chime plans to bring key banking infrastructure in-house and expand its lending business, managing Stride Bank's balance sheet once the transaction closes. Chime said the acquisition offers a faster and more proven path to full-stack ownership than applying for a de novo bank charter from scratch. The strategy echoes a broader industry pattern: reporting by Banking Dive noted that fintechs including LendingClub, which bought Radius Bank in 2021, and SoFi, which acquired Golden Pacific Bancorp in 2022, have taken the same route to accelerate national bank status.
Chime confirmed it will fund the entire $590 million purchase from existing balance-sheet cash without raising additional capital, according to a Business Wire press release. The company expects the deal to generate more than $100 million in annual net synergies, largely by eliminating third-party sponsor bank fees and lowering funding costs. Morgan Stanley is serving as financial advisor to Chime, while Piper Sandler & Co. is advising Stride Bank.
Keeping Assets Under the $10 Billion Line
Chime intends to keep Stride Bank's assets below $10 billion for the foreseeable future, a threshold with real financial teeth. Analysis of federal banking rules published by American Banker explained that staying under that line preserves an exemption from the 2010 Dodd-Frank Act's Durbin Amendment, letting Chime continue collecting higher debit card interchange fees that are otherwise capped for larger institutions.
Completing the acquisition will require formal sign-off from both the Federal Reserve Board and the Office of the Comptroller of the Currency, a process that will formally convert Chime into a regulated bank holding company, the outlet's reporting added. Chime and Stride Bank plan to close the acquisition in the first half of 2027.
Strong Numbers Behind the Deal
Chime paired the acquisition announcement with updated financial guidance. The company had previously expected 25% to 26% full-year revenue growth, but it now projects 26% to 27% growth, with third-quarter revenue forecast at $705 million and full-year revenue guidance raised to between $2.76 billion and $2.77 billion, according to disclosures relayed by Stock Titan. Adjusted EBITDA guidance now sits between $481 million and $489 million.
Chime targets everyday Americans with its banking products and has grown its user base by attracting younger customers through mobile-first tools, per the KSL.com report. The company's 2026 SEC annual report filings show it serves more than 10 million active monthly members, and it earned recognition this year when NerdWallet named Chime the best checking account and best online banking experience. Chime went public on the Nasdaq under the ticker CHYM in June 2025, pricing 32 million shares at $27 apiece to raise $864 million at an initial valuation of roughly $11.6 billion, according to a corporate press release issued via Business Wire at the time.
Chime also maintains a philanthropic arm, the Chime Scholars Foundation, through which it has pledged 1% of its corporate equity toward higher education scholarships. That commitment has funded nearly $10 million in scholarships for about 1,500 students over the past five years, a Business Wire release noted, and the company plans to maintain the pledge as it integrates Stride Bank's century-old operations into its tech stack.
