Waterbury, Conn.-based Webster Financial Corp. expects to increase its allowance for loan and lease losses by 25% to 35% to account for the current expected credit loss model, bank management said on their third-quarter earnings call.

The new accounting standard will be implemented Jan. 1, 2020, for the bank, which will record the initial adoption as a capital charge. According to CFO Glenn MacInnes, this will have "minimal impact on capital ratios, which will remain above well-capitalized levels."

The bank will not change its current loan mix to accommodate CECL, which includes some longer-term loans in the home equity lending category.

"Longer-dated assets obviously have a bigger CECL impact," MacInnes said. But he added the bank will still work with mortgage customers. "Our mortgage customers have higher checking accounts. They also purchase more banking products and services," he said.

The bank does not think its earnings per share or business strategy will be impacted by CECL, President and CEO John Ciulla added during the call.