INCOME TAXES (Tables)

12 Months Ended

Sep. 30, 2017

The provision for income taxes for the years ended September 30, 2017, 2016, and 2015, consisted of the following:



	For the Year Ended September 30, 2017
	Federal			State			Change in Valuation Allowance			Total
	(dollars in thousands)
Current	$	(939	)	$	(34	)	$	—		$	(973	)
Deferred	1,162			43			(2		)	1,203
Total	$	223		$	9		$	(2	)	$	230



	For the Year Ended September 30, 2016
	Federal		State			Change in Valuation Allowance		Total
	(dollars in thousands)
Current	$	1,368	$	(123	)	$	—	$	1,245
Deferred	666		97			3		766
Total	$	2,034	$	(26	)	$	3	$	2,011



	For the Year Ended September 30, 2015
	Federal			State			Change in Valuation Allowance		Total
	(dollars in thousands)
Current	$	(1,378	)	$	(638	)	$	—	$	(2,016	)
Deferred	4,739			973			6		5,718
Total	$	3,361		$	335		$	6	$	3,702

Schedule of reconciliation of actual tax expense and the expected tax expense computed by applying the applicable United States federal corporate tax rates to income before income taxes

The actual income tax expense for fiscal years 2017, 2016, and 2015 differs from the computed ‘expected’ income tax expense (benefit) for those years (computed by applying the currently applicable consolidated United States federal corporate tax rates of 35%, to income before income taxes) as follows:



	For the Years Ended September 30,
	2017			2016			2015
	(dollars in thousands)
Computed ‘expected’ income tax expense	$	224		$	2,040		$	3,217
State tax (net of federal tax benefit)	21			36			567
Other, net	(15		)	(65		)	(82		)
Total	$	230		$	2,011		$	3,702

Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities

The income tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at September 30, 2017 and 2016, are presented below:



	As of September 30,
	2017			2016
	(dollars in thousands)
Deferred tax assets:
Allowance for credit losses	$	12,220		$	11,010
Unearned insurance reserves	424			2,400
Accrued expenses	126			575
State net operating losses and credits	43			44
Other	418			464
Total deferred tax assets	13,231			14,493
Valuation allowance	(39		)	(41		)
Deferred tax assets, net of valuation allowance	13,192			14,452

Deferred tax liabilities:
Depreciation	120			188
Other	90			79
Total deferred tax liabilities	210			267

Net deferred tax assets	$	12,982		$	14,185

Schedule of reconciliation of unrecognized tax benefits

A reconciliation of unrecognized tax benefits for fiscal year 2017, 2016 and 2015 is as follows:



	As of and for the Years Ended September 30,
	2017			2016			2015
	(dollars in thousands)
Balance, beginning of year	$	41		$	108		$	309
Increase in tax positions taken in current periods	8			10			7
Increase in tax positions taken in prior periods	—			—			1
Decrease in tax positions taken in prior periods	(1		)	—			(159		)
Decrease due to lapse of applicable statute of limitations	(15		)	(77		)	(50		)
Balance, end of year	$	33		$	41		$	108