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INCOME TAXES (Tables) | 12 Months Ended
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Sep. 30, 2019
Income Tax Disclosure [Abstract] |
Provision for Income Taxes | The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes for the years presented below consisted of the following:
Fiscal Years Ended September 30, | 2019 |  | 2018 |  | 2017
(Dollars in Thousands) |  |  |  |  |
Federal: |  |  |  |  |
Current | $ | 5,278 |  |  | $ | (4,023 | ) |  | $ | 12,153 |
Deferred | (14,831 | ) |  | 5,895 |  |  | (5,040 | )
| (9,553 | ) |  | 1,872 |  |  | 7,113 |
State: |  |  |  |  |  |  |  |
Current | 5,649 |  |  | 2,611 |  |  | 4,366 |
Deferred | 530 |  |  | 634 |  |  | (1,246 | )
| 6,179 |  |  | 3,245 |  |  | 3,120 |
Income tax (benefit) expense | $ | (3,374 | ) |  | $ | 5,117 |  |  | $ | 10,233 |
Components of Net Deferred Tax Asset (Liability) | The tax effects of the Company's temporary differences that give rise to significant portions of its deferred tax assets and liabilities at September 30, 2019 and 2018 were:
September 30, | 2019 |  | 2018
(Dollars in Thousands) |  |  |
Deferred tax assets: |  |  |
Bad debts | $ | 6,805 |  |  | $ | 3,224 |
Deferred compensation | 1,626 |  |  | 3,495 |
Stock based compensation | 4,296 |  |  | 3,758 |
Net unrealized losses on securities available for sale | — |  |  | 10,663 |
Valuation adjustments | 6,596 |  |  | 6,991 |
General business credits(1) | 27,935 |  |  | 12,243 |
Accrued expenses | 3,767 |  |  | 3,144 |
Other assets | 3,144 |  |  | 1,629 |
| 54,169 |  |  | 45,147 |
Deferred tax liabilities: |  |  |  |  |
Premises and equipment | (3,084 | ) |  | (347 | )
Intangibles | (1,812 | ) |  | (4,231 | )
Net unrealized gains on securities available for sale | (2,146 | ) |  | — |
Deferred income | (179 | ) |  | (2,070 | )
Leased assets | (24,996 | ) |  | (17,985 | )
Other liabilities | (3,068 | ) |  | (1,777 | )
| (35,285 | ) |  | (26,410 | )
Net deferred tax assets | $ | 18,884 |  |  | $ | 18,737 |
(1) The general business credits are investment tax credits generated from qualified solar energy property placed in service during the fiscal years ended September 30, 2019 and 2018. These credits expire on September 30, 2039.
Reconciliation of Total Income Tax Expense | The Company's effective tax rate is calculated by dividing income tax expense by income before income tax expense.
Fiscal Years Ended September 30, | 2019 |  | 2018 |  | 2017
| Amount | Rate |  | Amount | Rate |  | Amount | Rate
(Dollars in Thousands) |  |  |  |  |  |  |  |
Statutory federal income tax expense and rate | $ | 20,568 |  | 21.0 | % |  | $ | 14,082 |  | 24.5 | % |  | $ | 19,303 |  | 35.0 | %
Change in tax rate resulting from: |  |  |  |  |  |  |  |
State income taxes net of federal benefits | 5,000 |  | 5.1 | % |  | 2,461 |  | 4.3 | % |  | 2,014 |  | 3.7 | %
162(m) disallowance | 2,777 |  | 2.8 | % |  | — |  | — | % |  | — |  | — | %
Tax exempt income | (2,714 | ) | (2.8 | )% |  | (6,968 | ) | (12.1 | )% |  | (9,991 | ) | (18.1 | )%
Nondeductible acquisition costs | — |  | — | % |  | 1,295 |  | 2.3 | % |  | — |  | — | %
General business credits | (27,126 | ) | (27.7 | )% |  | (3,948 | ) | (6.9 | )% |  | — |  | — | %
Tax reform | — |  | — | % |  | 3,849 |  | 6.7 | % |  | — |  | — | %
Amended Crestmark Bancorp historical tax return | — |  | — | % |  | (4,644 | ) | (8.1 | )% |  | — |  | — | %
Other, net | (1,879 | ) | (1.8 | )% |  | (1,010 | ) | (1.7 | )% |  | (1,093 | ) | (2.0 | )%
Total income tax (benefit) expense | $ | (3,374 | ) | (3.4 | )% |  | $ | 5,117 |  | 9.0 | % |  | $ | 10,233 |  | 18.6 | %
Reconciliation of Liabilities Associated with Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the fiscal years ended September 30, 2019 and 2018 follows:
September 30, | 2019 |  | 2018
(Dollars in Thousands) |  |  |
Balance at beginning of fiscal year | $ | 434 |  |  | $ | 645 |
Reductions for tax positions related to prior years | (66 | ) |  | (211 | )
Balance at end of fiscal year | $ | 368 |  |  | $ | 434 |

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