XML 61 R23.htm IDEA: XBRL DOCUMENT v3.21.2
Income Taxes
 12 Months Ended
Sep. 30, 2021
Income Tax Disclosure [Abstract]  
Income Taxes INCOME TAXES
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, 2021September 30, 2020
 (In thousands)
Deferred tax assets
Allowance for credit losses$45,724 $44,150 
REO reserves173 265 
Non-accrual loan interest1,080 892 
Deferred compensation6,230 3,506 
Stock based compensation2,508 2,218 
Lease liability6,655 7,660 
Other4,525 2,269 
Total deferred tax assets66,895 60,960 
Deferred tax liabilities
FHLB stock dividends9,783 14,637 
Valuation adjustment on available-for-sale securities and cash flow hedges20,845 5,064 
Loan origination fees and costs5,645 7,116 
Premises and equipment21,426 21,399 
Lease right-of-use assets6,249 7,270 
Other9,139 5,767 
Total deferred tax liabilities73,087 61,253 
Net deferred tax asset (liability)(6,192)(293)
Current tax asset (liability)10,069 6,001 
Net tax asset (liability)$3,877 $5,708 
The table below presents a reconciliation of the statutory federal income tax rate to the Company's effective income tax rate.

Year ended September 30,202120202019
Statutory income tax rate21 %21 %21 %
State income tax2 2 2 
Other differences(2)(2)(3)
Effective income tax rate21 %21 %20 %

The following table summarizes the Company's income tax expense (benefit) for the respective periods.

Year ended September 30,202120202019
(In thousands)
Federal:
Current$53,820 $49,782 $46,376 
Deferred(8,468)(7,858)1,916 
45,352 41,924 48,292 
State:
  Current$5,584 $5,310 $4,557 
  Deferred(1,413)(1,486)(330)
4,171 3,824 4,227 
Total
  Current59,404 55,092 50,933 
  Deferred(9,881)(9,344)1,586 
$49,523 $45,748 $52,519 

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, 2021 or September 30, 2020.
The Company's federal income tax returns are open and subject to potential examination by the IRS for fiscal years 2018 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.