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INCOME TAXES (Tables)
12 Months Ended
Sep. 30, 2021
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 were as follows:
Fiscal Year Ended September 30,
(Dollars in Thousands)202120202019
Federal:
Current$6,402 $3,148 $5,278 
Deferred(3,909)(4,505)(14,831)
2,493 (1,357)(9,553)
State:   
Current5,938 4,860 5,649 
Deferred2,270 2,158 530 
8,208 7,018 6,179 
Income tax expense (benefit)$10,701 $5,661 $(3,374)
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 were:
At September 30,
(Dollars in Thousands)20212020
Deferred tax assets:
Bad debts$15,946 $13,968 
Deferred compensation3,733 1,288 
Stock based compensation3,314 4,073 
Valuation adjustments4,111 5,343 
General business credits(1)
49,196 37,888 
Accrued expenses2,780 2,155 
Lease liability9,206 6,798 
Other assets4,253 3,215 
 92,539 74,728 
Deferred tax liabilities:  
Premises and equipment(3,328)(2,852)
Intangibles(3,032)(2,114)
Net unrealized gains on securities available for sale(2,471)(5,964)
Leased assets(46,355)(35,279)
Right-of-use assets(8,877)(6,550)
Other liabilities(3,303)(4,246)
(67,366)(57,005)
Net deferred tax assets$25,173 $17,723 
(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, 2021 and 2020. These credits expire on September 30, 2041 and 2040, respectively.
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 Year Ended September 30,
202120202019
(Dollars in Thousands)AmountRateAmountRateAmountRate
Statutory federal income tax expense and rate$32,854 21.0 %$24,151 21.0 %$20,568 21.0 %
Change in tax rate resulting from:
State income taxes net of federal benefits6,452 4.1 %5,444 4.7 %5,000 5.1 %
162(m) disallowance686 0.4 %1,129 1.0 %2,777 2.8 %
Tax exempt income(835)(0.5)%(1,212)(1.0)%(2,714)(2.8)%
General business credits(26,945)(17.2)%(22,284)(19.4)%(27,126)(27.7)%
Other, net(1,511)(1.0)%(1,567)(1.4)%(1,879)(1.8)%
Income tax expense (benefit)$10,701 6.8 %$5,661 4.9 %$(3,374)(3.4)%
Reconciliation of Liabilities Associated with Unrecognized Tax Benefits
A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits follows:
 
At September 30,
(Dollars in Thousands)20212020
Balance at beginning of fiscal year$1,091 $368 
Additions (reductions) for tax positions related to prior years(314)723 
Balance at end of fiscal year$777 $1,091