Glacier Bancorp, Inc. (NASDAQ:GBCI) Q3 2019 Earnings Conference Call - Final Transcript

Sure sir. [Operator Instructions] We have our first question on the line. Jeff Rulis from D.A. Davidson. Your line is open.

Thanks, good morning.

Good morning, Jeff.

Randy, your comments on, I guess, elevated pay downs and perhaps some more aggressive competition kind of moderating that growth outlook a little bit, we've got your kind of guide for '20 -- or excuse me, for the -- through the end of the year, but how does that bleed into '20 and do you see the paydowns as somewhat temporary? And I guess, the balance of '20, how would you look at growth?

At this point, it looks like a pretty kind of equal segue into '20 at these growth rates. We don't expect a huge change in kind of those factors, but 5% to 6% kind of feels like what '20 is going to look like at this point.

Do you get the sense that just when you're talking to business customers, any softening or any behavioral changes, given macro events that they're sort of pulling in the horns at all? Anything on that front?

No, we talk to our customers a lot across our western states. I think a lot of them remain very confident. I did make a note in my comments just as we see some of our long-time customers experienced in a lot of our markets sell properties, I think they're a little more cautious on making reinvestments and that's part of what's taken our growth rate moderating it slightly. I don't think they have any concerns other than they just want to continue to make good investments and it's been a little harder to find, as the economy has continued to do well over a long period of time.

Got it, okay. And I don't know if Barry John or someone else could tackle it. Just -- do you guys have a CECL update to provide and just thoughts on that and provisioning levels potentially going forward?

You want Barry, you got him.

Okay. Good morning, Jeff.

Good morning.

We have been running parallel runs since March. We went through about six different runs that we've compared the numbers with, where we're at now, where we're going. Based on what we're seeing, given the fact that there is -- it's still a moving target, the model isn't totally structured yet to the way we want it. Also we have an acquisition coming up with the State Bank of Arizona, that will impact the numbers. And of course there is always the accounting adjustments that impact the numbers, but overall we feel that with CECL implementation, there will be an increase in the reserve from where we project our reserve to be at year end. How big that is, is still a soft number, so we're just kind of keeping that in our hip pocket until we get closer to year-end when we run the last incurred loss model.

I see. Okay, thanks. And maybe the one last