Income Taxes (Tables)

12 Months Ended

Sep. 30, 2017

Income tax expense for the years ended September 30, 2017, 2016, and 2015 consisted of the following:



	2017		2016		2015
	(Dollars in thousands)
Current:
Federal	$	38,127	$	33,298	$	30,079
State	4,734		4,677		4,395
	42,861		37,975		34,474
Deferred:
Federal	712		286		2,869
State	210		184		332
	922		470		3,201
	$	43,783	$	38,445	$	37,675

Differences Between Effective Rates And Statutory Federal Income Tax Rate Computed On Income Before Income Tax Expense

The Company's effective tax rates were 34.2%, 31.5%, and 32.5% for the years ended September 30, 2017, 2016, and 2015, respectively. The increase in the effective tax rate for the year ended September 30, 2017 was due primarily to the accounting method change for low income housing partnership investments. See "Note 1. Summary of Significant Accounting Policies" for further discussion regarding the accounting method change and "Note 6. Low Income Housing Partnerships" for additional information regarding the income tax expense components of the low income housing partnership investments. The differences between such effective rates and the statutory Federal income tax rate computed on income before income tax expense resulted from the following:



	2017					2016					2015
	Amount			%		Amount			%		Amount			%
	(Dollars in thousands)
Federal income tax expense
computed at statutory Federal rate	$	44,772		35.0	%	$	42,679		35.0	%	$	40,519		35.0	%
Increases (decreases) in taxes resulting from:
State taxes, net of Federal tax effect	3,452			2.7		3,308			2.7		3,257			2.8
Low income housing tax credits, presented net of proportional amortization in 2017	(2,468		)	(2.0	)	(4,815		)	(4.0	)	(4,316		)	(3.7	)
ESOP related expenses, net	(1,052		)	(0.8	)	(1,127		)	(0.9	)	(1,222		)	(1.1	)
Other	(921		)	(0.7	)	(1,600		)	(1.3	)	(563		)	(0.5	)
	$	43,783		34.2	%	$	38,445		31.5	%	$	37,675		32.5	%

Deferred Income Tax Expense (Benefit) Results From Temporary Differences In Recognition Of Revenue And Expenses For Tax

Deferred income tax expense represents the change in deferred income tax assets and liabilities excluding the tax effects of the change in net unrealized gain (loss) on AFS securities, interest rate swaps and changes in the market value of restricted stock between the grant date and vesting date. The sources of these differences and the tax effect of each as of September 30, 2017, 2016, and 2015 were as follows:



	2017			2016			2015
	(Dollars in thousands)
Salaries, deferred compensation and employee benefits	$	437		$	(143	)	$	(12	)
Low income housing partnerships	285			(318		)	(763		)
ACL	185			480			(75		)
Premises and equipment	14			1,593			(129		)
FHLB stock dividends	4			(1,357		)	4,083
Capitol Federal Foundation contribution	—			—			418
Other, net	(3		)	215			(321		)
	$	922		$	470		$	3,201

Components Of Net Deferred Income Tax Liabilities

The components of the net deferred income tax liabilities as of September 30, 2017 and 2016 were as follows:



	2017			2016
	(Dollars in thousands)
Deferred income tax assets:
Salaries, deferred compensation and employee benefits	$	2,583		$	3,020
Low income housing partnerships	1,478			1,763
ESOP compensation	1,724			1,566
ACL	711			896
Other	2,621			2,528
Gross deferred income tax assets	9,117			9,773

Valuation allowance	(1,795		)	(1,804		)
Gross deferred income tax asset, net of valuation allowance	7,322			7,969

Deferred income tax liabilities:
FHLB stock dividends	23,242			23,238
Premises and equipment	6,105			6,091
Unrealized gain on AFS securities	2,000			3,595
Other	433			419
Gross deferred income tax liabilities	31,780			33,343

Net deferred tax liabilities	$	24,458		$	25,374