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INCOME TAXES
 3 Months Ended
Dec. 31, 2019
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES

The Company recorded an income tax expense of $0.7 million for the three months ended December 31, 2019, resulting in an effective tax rate of 2.97%, compared to an income tax benefit of $1.7 million, or an effective tax rate of (11.56%), for the three months ended December 31, 2018. The Company’s effective tax rate was lower than the U.S. statutory rate of 21% primarily because of the anticipated effect of investment tax credits during fiscal year 2019. The Company’s effective tax rate in the future will depend in part on actual investment tax credits earned as part of its financing of solar energy projects.

The table below compares the income tax expense components for the periods presented.
Three Months Ended December 31,
2019
 
2018
(Dollars in Thousands)
 
 
 
Provision at statutory rate
$
4,567

 
$
3,072

Tax-exempt income
(294
)
 
(1,201
)
State income taxes
1,090

 
701

Interim period effective rate adjustment
860

 
5,263

Tax credit investments, net - federal
(4,800
)
 
(9,568
)
Research tax credit
(1,709
)
 
—

IRC 162(m) nondeductible compensation
838

 
—

Other, net
128

 
42

Income tax expense (benefit)
$
680

 
$
(1,691
)
Effective tax rate
2.97
%
 
(11.56
)%