Key Highlights
- Chime Financial plans to purchase Stride Bank for $590 million in an all-cash transaction set to finalize in early 2027.
- Following completion, Stride Bank will be renamed Chime Bank, N.A. and function as a fully owned subsidiary.
- Shares of CHYM climbed 10% during after-hours trading Tuesday on the acquisition news.
- UBS analysts increased their CHYM price target from $28 to $31 while keeping a Neutral stance.
- The fintech company anticipates approximately $100 million in combined synergies, primarily from reduced sponsor bank expenses.
[[LINK_START_1]]Chime Financial[[LINK_END_1]] has entered into an agreement to purchase Stride Bank, an Oklahoma-based financial institution with 113 years of history, in a $590 million all-cash deal. This transaction marks Chime’s transformation into a fully chartered banking entity.
Chime Financial, Inc. Class A Common Stock, CHYM
Shares of Chime Financial surged 10% in extended trading Tuesday after the acquisition was unveiled. The stock is now trading near $32.31, representing approximately 20% gains above its $27 initial public offering price from June 2025.
Once the transaction concludes, Stride Bank will undergo a rebranding to become Chime Bank, N.A., continuing operations as a completely owned subsidiary of the parent company.
Rather than pursuing a de novo charter application, Chime opted for the acquisition strategy. Company executives explained this approach provides “a faster and more proven path to full-stack ownership.”
The relationship between Chime and Stride Bank spans over seven years, during which Stride has served as the banking infrastructure provider supporting Chime’s checking account products and related financial services.
This strategic combination merges Chime’s consumer-focused technology platform and its proprietary ChimeCore system with Stride’s federal banking charter, existing deposit portfolio, and established regulatory compliance framework.
The transaction is expected to generate significant cost reductions by removing sponsor banking fees and decreasing funding expenses. Chime’s management forecasts approximately $100 million in combined net synergies resulting from the merger.
Additionally, Chime intends to maintain its consolidated assets beneath the $10 billion threshold post-acquisition. This regulatory benchmark separates community banking institutions from larger financial organizations subject to enhanced oversight.
Analyst Response
UBS analysts adjusted their CHYM price objective upward to $31 from a previous $28 following the deal announcement, while maintaining their Neutral investment rating. Current trading levels have already exceeded this revised target.
Wolfe Research elevated its price target to $32 with an Outperform rating intact, citing Chime’s strong second-quarter performance and upgraded annual projections.
Loop Capital launched coverage with a Buy recommendation and $45 price objective, highlighting distinctive offerings such as advance paycheck access and debit card rewards programs.
Goldman Sachs noted positive adjustments to revenue and earnings forecasts for Chime as part of broader upgrades across the fintech sector.
Financial Performance and Future Plans
The company revised its annual revenue forecast to a range of $2.76 billion to $2.77 billion. Management projects adjusted EBITDA will land between $481 million and $489 million for the full year.
Prior to announcing this acquisition, Chime reduced its workforce by 10% during the summer months as part of an organizational restructuring initiative. CEO Chris Britt characterized the decision as necessary for creating a more efficient operation leveraging artificial intelligence-powered teams.
The company has also revealed interest in incorporating stablecoin technology into its consumer banking offerings and has solicited vendor proposals for stablecoin wallet integration services.
Pending regulatory clearance, the Stride Bank acquisition is anticipated to reach completion during the first half of 2027. Chime Financial presently commands a market valuation of approximately $12.23 billion.
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