Income Taxes

On December 22, 2017, the federal government enacted the Tax Cuts and Jobs Act (the "Tax Act"). The Tax Act significantly revised the future ongoing federal corporate income tax by, among other things, decreasing the federal corporate income tax rate to 21.0% from 35.0% effective January 1, 2018. As the Company has a September 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a blended federal income tax rate of approximately 24.5% for the Company's fiscal year ended September 30, 2018, and 21.0% for subsequent fiscal years. In addition, the reduction of the corporate federal income tax rate required the Company to revalue its deferred tax assets and liabilities based on the lower federal income tax rate of 21.0%.

As a result of the Tax Act, during the year ended September 30, 2018, the Company recorded a one-time income tax expense of $548,000 in conjunction with remeasuring its net deferred tax assets. The impact of using the 24.5% blended federal income tax rate for the year ended September 30, 2018 versus a 35.0% rate reduced the provision for income taxes by approximately $2.21 million, which was partially offset by the $548,000 one-time net deferred tax asset remeasurement.

The components of the provision for income taxes for the years ended September 30, 2019, 2018 and 2017 were as follows (dollars in thousands):



	2019		2018		2017
Current:
Federal	$	5,198	$	4,900	$	6,656
State	—		4		35
Deferred	703		797		385
Provision for income taxes	$	5,901	$	5,701	$	7,076

At September 30, 2019 the Company had income taxes receivable of $1,210,000, which is included in other assets in the accompanying 2019 consolidated balance sheet. At September 30, 2018 the Company had income taxes payable of $151,000, which is included in other liabilities in the accompanying 2018 consolidated balance sheet.

The components of the Company’s deferred tax assets and liabilities at September 30, 2019 and 2018 were as follows (dollars in thousands):



	2019		2018
Deferred Tax Assets
Allowance for loan losses	$	1,550	$	2,021
Allowance for OREO losses	218		311
Unearned ESOP shares	—		32
Core deposit intangible	—		31
OTTI credit impairment on investment securities	97		104
Accrued interest on loans	76		10
Net unrealized losses on investment securities	—		42
Deferred compensation and bonuses	520		56
Reserve for loan commitments	51		43
Other	82		29
Total deferred tax assets	2,594		2,679



Deferred Tax Liabilities
Goodwill	1,187			1,107
Servicing rights	506			426
Depreciation	494			283
Loan fees/costs	267			121
FHLB stock dividends	82			82
Prepaid expenses	70			74
Purchase accounting adjustment	110			—
Net unrealized gains on investment securities and investments in equity securities	15			—
Other	—			2
Total deferred tax liabilities	2,731			2,095

Net deferred tax assets (liabilities)	$	(137	)	$	584

The provision for income taxes for the years ended September 30, 2019, 2018 and 2017 differs from that computed at the federal statutory corporate tax rate as follows (dollars in thousands):



	2019			2018			2017
Expected federal income tax provision at statutory rate	$	6,283		$	5,500		$	7,435
Net impact of the Tax Act	—			548			—
BOLI income	(345		)	(134		)	(191		)
Dividends on ESOP	(73		)	(71		)	(102		)
Stock options tax effect	(87		)	(157		)	(188		)
Other, net	123			15			122
Provision for income taxes	$	5,901		$	5,701		$	7,076

No valuation allowance for deferred tax assets was recorded as of September 30, 2019 and 2018, as management believes that it is more likely than not that all of the deferred tax assets will be realized based on management's expectations of future taxable income.