Chime to buy nationally chartered Stride Bank for $590 million, shares jump

Sept 8 — Fintech Chime said on Tuesday it will acquire nationally ​chartered Stride Bank for $590 million, bringing key banking infrastructure in-house as it looks to expand its ‌lending business.

Here are some details:

• Chime's shares, which are up over ⁠28% this year, jumped nearly ​10% in extended trading.

• ⁠The all-cash deal is expected to help Chime ‌realize more than $100 ‌million in net synergies and close in the ⁠first half of 2027.

• Enid, ⁠Oklahoma-based Stride was founded in 1913 and provides financial services including consumer and commercial banking. The bank has been a partner to Chime for over seven years.

• "The acquisition of Stride Bank provides Chime with ‌a faster and more proven ​path to full-stack ownership versus pursuing a de novo bank charter," Chime said in a statement.

• Chime will manage Stride's balance sheet upon closing and keep its assets below $10 billion for the foreseeable future.

• San Francisco-based Chime targets everyday Americans with banking products ​and has managed to grow its user base by ‌attracting younger customers ‌through ⁠its mobile-first products

• Chime also raised its full-year revenue forecast and now expects between 26% and 27% growth, from its prior expectation of 25% to 26%.

• Morgan ‌Stanley is serving ​as a financial advisor to ‌Chime, while Piper Sandler & ⁠Co ​is advising Stride.

(Reporting by Utkarsh Shetti in Bengaluru; Editing by ​Shailesh Kuber)

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