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Income Taxes
 12 Months Ended
Sep. 30, 2022
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, 2022September 30, 2021
 (In thousands)
Deferred tax assets
Allowance for credit losses$47,426 $45,724 
REO reserves329 173 
Non-accrual loan interest1,104 1,080 
Deferred compensation6,841 6,230 
Stock based compensation2,636 2,508 
Lease liability6,207 6,655 
Other1,329 4,525 
Total deferred tax assets65,872 66,895 
Deferred tax liabilities
FHLB stock dividends9,826 9,783 
Valuation adjustment on available-for-sale securities and cash flow hedges15,765 20,845 
Loan origination fees and costs10,918 5,645 
Premises and equipment20,132 21,426 
Lease right-of-use assets5,992 6,249 
Equity investments5,323 2,982 
Other4,141 6,157 
Total deferred tax liabilities72,097 73,087 
Net deferred tax asset (liability)(6,225)(6,192)
Current tax asset (liability)2,920 10,069 
Net tax asset (liability)$(3,305)$3,877 
The table below presents a reconciliation of the statutory federal income tax rate to the Company's effective income tax rate.
Year ended September 30,202220212020
Statutory income tax rate21 %21 %21 %
State income tax2 2 2 
Other differences(2)(2)(2)
Effective income tax rate21 %21 %21 %

The following table summarizes the Company's income tax expense (benefit) for the respective periods.
Year ended September 30,202220212020
(In thousands)
Federal:
Current$50,854 $53,820 $49,782 
Deferred7,187 (8,468)(7,858)
58,041 45,352 41,924 
State:
  Current6,600 5,584 5,310 
  Deferred(934)(1,413)(1,486)
5,666 4,171 3,824 
Total
  Current57,454 59,404 55,092 
  Deferred6,253 (9,881)(9,344)
$63,707 $49,523 $45,748 

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, 2022 or September 30, 2021.
The Company's federal income tax returns are open and subject to potential examination by the IRS for fiscal years 2019 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.