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Income Taxes | 12 Months Ended
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Sep. 30, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Effective January 1, 2018, the corporate income tax rate was reduced to 21%. Because the Company has a fiscal year end of September 30, the reduced corporate tax rate resulted in the application of a blended federal statutory tax rate of 24.53% for its fiscal year 2018 and then 21% thereafter. Under generally accepted accounting principles, the Company uses the asset and liability method of accounting for income taxes. Under this method, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates applicable to taxable income in the years in which those temporary differences are expected to reverse. The table below provides a summary of the Company's tax assets and liabilities, including deferred tax assets and deferred tax liabilities by major source. Deferred tax balances represent temporary differences between the financial statement and corresponding tax treatment of income, gains, losses, deductions or credits.
| September 30, 2020 | September 30, 2019
| (In thousands)
Deferred tax assets |  |
Allowance for credit losses | $ | 44,150 |  | $ | 31,494 |
REO reserves | 265 |  | 255 |
Non-accrual loan interest | 892 |  | 891 |
Federal and state tax credits | — |  | 537 |
Deferred compensation | 3,506 |  | 3,022 |
Stock based compensation | 2,218 |  | 1,876 |
Lease liability | 7,660 |  | — |
Other | 2,269 |  | 2,081 |
Total deferred tax assets | 60,960 |  | 40,156 |
Deferred tax liabilities |  |
FHLB stock dividends | 14,637 |  | 14,478 |
Valuation adjustment on available-for-sale securities and cash flow hedges | 5,064 |  | 4,503 |
Loan origination fees and costs | 7,116 |  | 8,385 |
Premises and equipment | 21,399 |  | 25,399 |
Lease right-of-use assets | 7,270 |  | — |
Other | 5,767 |  | 2,851 |
Total deferred tax liabilities | 61,253 |  | 55,616 |
Net deferred tax asset (liability) | (293) |  | (15,460) |
Current tax asset (liability) | 6,001 |  | 10,356 |
Net tax asset (liability) | $ | 5,708 |  | $ | (5,104) |
The table below presents a reconciliation of the statutory federal income tax rate to the Company's effective income tax rate.
Year ended September 30, | 2020 | 2019 | 2018
Statutory income tax rate | 21 | % | 21 | % | 25 | %
State income tax | 2 |  | 2 |  | 2 |
Impact of change in Federal income tax rate | — |  | — |  | (2) |
Other differences | (2) |  | (3) |  | (4) |
Effective income tax rate | 21 | % | 20 | % | 21 | %
The following table summarizes the Company's income tax expense (benefit) for the respective periods.
Year ended September 30, | 2020 | 2019 | 2018
| (In thousands)
Federal: |  |  |
Current | $ | 49,782 |  | $ | 46,376 |  | $ | 40,314 |
Deferred | (7,858) |  | 1,916 |  | 8,952 |
| 41,924 |  | 48,292 |  | 49,266 |
State: |  |  |
Current | $ | 5,310 |  | $ | 4,557 |  | $ | 4,243 |
Deferred | (1,486) |  | (330) |  | (116) |
| 3,824 |  | 4,227 |  | 4,127 |
Total |  |  |
Current | 55,092 |  | 50,933 |  | 44,557 |
Deferred | (9,344) |  | 1,586 |  | 8,836 |
| $ | 45,748 |  | $ | 52,519 |  | $ | 53,393 |
Based on current information, the Company does not expect that changes in the amount of unrecognized tax benefits over the next 12 months will have a significant impact on its results of operations or financial position. The Company does not have a liability for uncertain tax positions as of September 30, 2020 or September 30, 2019. The Company's federal income tax returns are open and subject to potential examination by the IRS for fiscal years 2017 and later. State income tax returns are generally subject to examination for a period of three to five years after filing. The state impact of any federal changes remains subject to examination by various states for a period of up to two years after formal notification to the states.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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