Chime has agreed to acquire Stride Bank, its long-standing banking partner, in a cash transaction valued at USD 590 million.
According to the official press release, upon completion of the transaction, Stride will be renamed Chime Bank and will operate as a wholly owned subsidiary of Chime.
The acquisition marks a shift for Chime from a partner-bank model to direct bank ownership, bringing together Chime's technology platform with Stride's national charter and banking infrastructure. According to the companies, the combination is intended to unify data and decisioning processes by integrating ChimeCore, Chime's proprietary technology stack, with Stride's banking systems, and to reduce Chime's reliance on third-party sponsor banks.
Chime stated that owning the bank is expected to remove partner-bank fees, lower its cost of funds, and improve unit economics, while allowing the company to serve consumers across all fifty US states. The company added that it intends to keep its consolidated balance sheet below USD 10 billion in assets for the foreseeable future.
Stride Bank, founded in 1913 and based in the US, has operated as a community-focused institution serving consumers, businesses, and fintech partners. Chime's CEO and co-founder, Chris Britt, said the transaction is intended to strengthen the company's existing strategy rather than change it, while Stride's chairman and CEO, Brud Baker, said the bank's national charter and team would be central to the combined entity going forward.
Financial terms and guidance
The transaction values Stride at approximately 1.5 times tangible book value. Chime said the deal is expected to be accretive to earnings per share immediately upon closing, with more than USD 100 million in projected net synergies from sponsor-bank fee savings, lending expansion, and reduced funding costs. Chime intends to fund the acquisition from existing cash on its balance sheet, without additional capital contributions.
The transaction is expected to close in the first half of 2027, subject to regulatory approval from the Office of the Comptroller of the Currency and the Board of Governors of the Federal Reserve System, along with other customary closing conditions. The boards of directors of both companies have unanimously approved the agreement.
Chime reported more than 10 million Active Members prior to the announcement. The acquisition follows Chime's public listing on the Nasdaq under the ticker CHYM.
