Stock in “Republic First” Down 40% This Month Due to People Confusing It With “First Republic” Bank

Philadelphia-based Republic First Bancorp Inc. has seen its stock fall by over 40% this month, after investors confused it with First Republic Bank.

The confusion is not new, as the two banks first had a naming rights dispute 20 years ago, but it has become a serious problem.

Republic First is a regional bank focused on commercial and retail customers, while San Francisco-based First Republic specializes in private banking for high net worth clients.

The selloff began on March 17, when Republic First’s shares plummeted by as much as 28% with no news to report. In contrast, First Republic had received a rescue package that Wall Street took as a warning, sending its shares down as much as 35%

Despite a letter posted on the company’s website from Republic First’s CEO Thomas Geisel stating that his company is not First Republic Bank, the mix-up has caused significant selling pressure.

“It’s important to fully understand there are significant differences between these banks, other ‘Start-up’ or ‘Crypto-focused’ banks versus Republic Bank and the thousands of other community banks,” Geisel wrote.

Shares in Republic First rose 14% on Friday but still finished the month of March down 32%. Republic First has a heavier concentration of retail investors than its peers, making it more prone to name confusion.

The confusion around similarly named companies is not new, as seen with other notable examples such as Zoom Technologies Inc. and Zoom Video Communications Inc., as well as Zevia PBC and Zenvia Inc.