PITTSBURGH — Auto loans continue to be a strength for First Commonwealth Financial Corp., but the dwindling national supply of new vehicles due to a shortfall in semiconductor chips is worsening, and the bank is bracing for frustration.
“We are predominantly a newish used car lender, but the chip and part shortages are affecting used cars as much as new cars,” Jane Grebenc, chief revenue officer and president of First Commonwealth Bank, told financial analysts during its first-quarter earnings call on Wednesday. “We’ll have a good spring, but I think it’s going to mute our growth a bit over the next couple months. It will be good, but it could have been great.”
First Commonwealth (NYSE:FCF) on Tuesday reported first-quarter 2021 net income of $39.8 million, or $0.41 per diluted share, compared to $4.7 million, or $.05, a year ago, handily beating Wall Street’s projections.