Chime to buy Stride Bank for $590M in cash

Chime has entered into a definitive agreement to acquire Stride Bank, N.A. in an all-cash transaction valued at $590 million. The purchase price represents approximately 1.5 times Stride’s tangible book value. Stride is described as a profitable, well-capitalized, nationally chartered bank and has served as Chime’s bank partner for more than seven years.

Upon completion of the transaction, Stride will be renamed Chime Bank, N.A. and will operate as a wholly owned subsidiary. Chime plans to consolidate its banking activities at the acquired institution, using it as the core platform for its banking operations while retaining Stride’s existing national charter.

Chime expects the acquisition to be immediately accretive to its earnings per share. The company forecasts more than $100 million in net synergies from the deal, driven by lower sponsor-bank fees, expanded lending capabilities and reduced funding costs. These anticipated benefits underpin an updated financial outlook for the coming years.

For the full year 2026, Chime has raised its revenue guidance to a range of $2.76 billion to $2.77 billion. Adjusted EBITDA guidance for 2026 has been increased to between $481 million and $489 million. For the third quarter of 2026, Chime now expects revenue of $705 million and adjusted EBITDA between $117 million and $120 million.

Chime plans to fund the $590 million purchase entirely from cash on its balance sheet and does not anticipate needing incremental capital contributions to complete the acquisition. After closing, the company intends to manage its balance sheet so that total assets remain below $10 billion for the foreseeable future.

The boards of directors of both Chime and Stride have unanimously approved the transaction. Closing is expected in the first half of 2027, subject to approvals from the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System, as well as customary closing conditions. Stride, founded in 1913 and headquartered in Enid, Oklahoma, has a branch presence in Oklahoma and Salt Lake City, which will become part of the combined organization once the deal is completed.