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INCOME TAXES
 9 Months Ended
Jun. 30, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company recorded an income tax expense of $19.0 million for the nine months ended June 30, 2023, resulting in an effective tax rate of 12.80%, compared to an income tax expense of $29.2 million, or an effective tax rate of 17.77%, for the nine months ended June 30, 2022. The Company’s effective tax rate was lower than the U.S. statutory rate of 21% primarily because of the effect of investment tax credits during fiscal year 2023. The Company's effective tax rate in the future will depend in part on actual investment tax credits generated from qualified renewable energy property.

The table below compares the income tax expense components for the periods presented.
Nine Months Ended June 30,
(Dollars in thousands)20232022
Provision at statutory rate$30,808 $34,063 
Tax-exempt income(600)(541)
State income taxes6,109 6,728 
Interim period effective rate adjustment(3,065)(2,849)
Tax credit investments, net - federal(13,669)(6,994)
Research tax credit(805)(355)
IRC 162(m) nondeductible compensation928 801 
Other, net(710)(1,617)
Income tax expense$18,996 $29,236 
Effective tax rate12.80 %17.77 %