Chime Financial (CHYM) Stock Surges 10% on $590M Stride Bank Takeover

Key Highlights

• Chime Financial has agreed to purchase Stride Bank for $590 million in an all-cash transaction, anticipated to finalize in early-to-mid 2027.
• Following completion, Stride Bank will be renamed Chime Bank, N.A. and function as a fully owned subsidiary.
• Shares of Chime climbed 10% during after-hours trading after the acquisition was disclosed.
• UBS analysts upgraded their price target for CHYM from $28 to $31, though they kept their Neutral stance.
• The fintech company anticipates approximately $100 million in combined synergies, primarily from reduced sponsor bank expenses.

Chime Financial 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 transaction. This acquisition marks the fintech company’s transformation into a chartered banking institution.

Chime Financial, Inc. Class A Common Stock, CHYM

Shares of Chime experienced a significant 10% surge in extended trading hours on Tuesday after the deal was made public. The stock is now hovering around $32.31, representing approximately a 20% gain from its initial public offering price of $27 when the company debuted on the market in June 2025.

Following the transaction’s completion, Stride Bank will undergo a rebranding to Chime Bank, N.A. and will continue operations under Chime’s complete ownership.

Rather than pursuing a de novo bank charter application, Chime opted for the acquisition route. Company executives stated this approach provides “a faster and more proven path to full-stack ownership.”

The relationship between Chime and Stride spans over seven years, during which Stride has served as the banking infrastructure provider supporting Chime’s deposit accounts and various financial products.

This strategic combination merges Chime’s consumer-focused technology stack and proprietary ChimeCore platform with Stride’s federal banking charter, existing deposit portfolio, and established regulatory compliance framework.

The fintech company anticipates significant cost reductions through the elimination of third-party sponsor bank fees and decreased funding expenses. Management forecasts approximately $100 million in combined synergies resulting from this transaction.

Additionally, Chime has indicated its intention to maintain total assets beneath the $10 billion mark post-acquisition. This regulatory threshold distinguishes community banking institutions from larger financial organizations subject to enhanced oversight.

Analyst Coverage and Price Targets

UBS analysts revised their price objective for CHYM upward to $31 from the previous $28 target following the announcement, while continuing to maintain a Neutral investment rating. Current trading levels have already exceeded this updated target.

Wolfe Research increased its price target to $32 while reaffirming an Outperform rating, citing Chime’s strong second-quarter financial performance and upwardly revised annual projections.

Loop Capital launched coverage on the stock with a Buy recommendation and established a $45 price objective, highlighting distinctive offerings such as advance paycheck access and debit card rewards programs as competitive advantages.

Goldman Sachs noted positive adjustments to revenue projections and earnings per share forecasts for Chime as part of a wider assessment of financial technology companies.

Financial Performance and Future Direction

The company has revised its annual revenue projections to a range of $2.76 billion to $2.77 billion. Management expects adjusted EBITDA to fall between $481 million and $489 million for the full year.

Prior to announcing this acquisition, Chime implemented workforce reductions affecting 10% of employees during the summer months as part of a comprehensive organizational restructuring. Chief Executive Officer Chris Britt characterized this decision as necessary for developing a more streamlined operation leveraging artificial intelligence-powered teams.

The company has also disclosed its interest in incorporating stablecoin technology into its consumer banking offerings and has actively solicited proposals for digital wallet services supporting stablecoins.

Subject to receiving regulatory clearance, the transaction is scheduled to conclude during the first six months of 2027. Chime’s current market valuation stands at approximately $12.23 billion.