Chime to Acquire Stride Bank for $590M; Shares Jump

Chime agreed to acquire Stride Bank for $590 million, a transaction announced late Tuesday that would give the fintech a national bank charter and bring its long-time banking partner into Chime’s ownership. Shares rose about 9% in premarket trading after the announcement.

The deal would transfer Stride’s national charter to Chime, allowing the company to originate loans across its full customer base rather than relying on third-party sponsor banks. Under the current sponsor-bank structure Chime can lend to about 85% of its members.

Chime projects more than $100 million in net synergies from lower sponsor-bank fees, a wider set of lending products and a lower cost of funds. The company expects to complete the transaction in the first half of 2027 and on Tuesday raised its third-quarter and full-year forecasts for revenue and core profit growth.

Several analysts adjusted price targets after the announcement. Morgan Stanley kept an Overweight rating and raised its price target to $40 from $39. UBS increased its target to $31 from $28 while retaining a Neutral stance. Loop Capital initiated coverage with a Buy rating and a $45 target, implying nearly 40% upside. Other firms, including Piper Sandler, flagged potential improvements to unit economics and greater control over product development.

Evercore ISI wrote, “Becoming a full-fledged bank should allow Chime to capture a higher share of wallet with customers, increasing its direct depositor base and solidifying the moat around its platform.” Wolfe Research wrote that the deal would “support faster product innovation, increased member trust, a structural cost advantage and greater control.”

Chime intends to keep combined assets below $10 billion to remain exempt from debit-card interchange fee caps that apply to larger banks under the Durbin Amendment. Staying below that threshold would preserve a portion of the company’s revenue model tied to interchange fees.

Regulatory approvals and integration planning will affect the timing and final economics of the acquisition. Chime’s estimated synergies depend on reductions in sponsor-bank fees, expanded lending capabilities and lower funding costs once the national charter is in place. Investors and financial firms will track regulatory progress, integration costs and whether Chime’s updated forecasts materialize.