Chime acquires Stride Bank for $590 million to get bank charter

Chime acquires Stride Bank for $590 million to get bank charter

Wed, September 9, 2026 at 4:34 PM GMT+3 2 min read

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Chime agreed to acquire Stride Bank, N.A. for $590 million in cash, the San Francisco-based fintech said Tuesday, gaining a national bank charter through a partner it has worked with for more than seven years.

Under the deal, Stride will be renamed Chime Bank, N.A. and operate as a wholly owned subsidiary. Closing is anticipated in the first half of 2027, subject to sign-off from the Office of the Comptroller of the Currency and the Federal Reserve's Board of Governors, the company said.

Founded in 1913 and headquartered in Enid, Oklahoma, Stride has about $5.4 billion in assets and branch locations in Oklahoma and Salt Lake City, according to Banking Dive. The deal's price represents about 1.5 times Stride's tangible book value. Chime said it expects to fund the purchase from existing cash with no additional capital contribution.

Chime anticipates the deal will begin boosting earnings from day one of closing, with projected net synergies exceeding $100 million stemming from reduced sponsor-bank fees, a broader suite of lending offerings, and cheaper access to funding.

"We founded Chime because mainstream America deserved better banking," Chime CEO and co-founder Chris Britt said in a statement. "By combining Chime's leading brand and deep member relationships with Stride's national charter and team, we will accelerate toward our vision to be the largest provider of primary bank accounts in America."

Stride Chairman and CEO Brud Baker, who will continue to lead Chime Bank after the deal closes, said in a statement that Stride's national charter and experienced team "will be central to what comes next."

Chime said it chose to acquire an existing bank rather than apply for a de novo charter because the approach offers a faster path to full ownership. Pursuing an acquisition rather than a de novo application lets Chime sidestep the lengthy regulatory approval sequences and the gradual growth constraints that a new charter would impose, Britt told Bloomberg, adding that the approach lets the company "to achieve the vision even sooner."

Chime said it plans to keep the combined entity's assets below $10 billion. Staying beneath that level matters because it shields the company from the debit-card interchange limits that the 2010 Durbin amendment imposes on larger banks, according to Reuters.

The company also raised its financial guidance. For the third quarter, Chime now projects revenue of $705 million, compared with its earlier guidance range of $680 million to $690 million. Full-year revenue guidance was raised to $2.76 billion to $2.77 billion, from approximately $2.73 billion to $2.75 billion.

Chime shares jumped roughly 10% in premarket trading on Wednesday, while Bancorp Bank — the fintech's other banking partner — saw its stock slide 14%.

Morgan Stanley is serving as Chime's financial advisor on the transaction, with Wachtell, Lipton, Rosen & Katz as legal counsel. Piper Sandler is advising Stride, with McAfee & Taft as legal counsel, the company said.