Income Taxes (Tables)

12 Months Ended

Sep. 30, 2020

Schedule of income tax expense (benefit) components

The provision for income taxes charged to operations consists of the following for the fiscal years ended September 30, 2020, 2019 and 2018.


	Fiscal Years Ended September 30,
	2020		2019		2018
	(dollars in thousands)
Currently paid or payable
Federal	$	18,511	$	30,779	$	42,261
State	3,733		9,327		10,556
Total	22,244		40,106		52,817
Deferred tax (benefit) expense
Federal	(39,563)		7,507		20,205
State	(8,191)		617		1,097
Total	(47,754)		8,124		21,302
Total (benefit from) provision for income taxes	$	(25,510)	$	48,230	$	74,119

Schedule of effective income tax rate reconciliation

The income tax provision differs from the amount of income tax determined by applying a U.S. federal income tax rate of 21.0% for fiscal years 2020 and 2019, and a blended U.S. federal income tax rate of 24.5% for fiscal year 2018 to pretax income due to the following.


	Fiscal Years Ended September 30,
	2020		2019		2018
	(dollars in thousands)
Income tax expense computed at the statutory rate	$	(148,327)	$	45,275	$	56,915
Increase (decrease) in income taxes resulting from:
State income taxes, net of federal benefit	(3,521)		7,855		8,795
Tax exempt interest income	(5,515)		(5,193)		(5,778)
Tax impact of stock-based compensation plans	83		(91)		(424)
Tax impact of goodwill impairment	131,051		—		—
Impact of enacted federal income tax rate reduction	—		—		13,709
Other	719		384		902
Income tax expense, as reported	$	(25,510)	$	48,230	$	74,119

Schedule of deferred tax assets and liabilities

Net deferred tax assets (liabilities) consist of the following components at September 30, 2020 and 2019.


	September 30,
	2020		2019
	(dollars in thousands)
Deferred tax assets:
Allowance for loan and lease losses	$	36,177	$	17,214
Compensation	3,547		4,017
Securities available for sale	—		—
Other real estate owned	3,067		574
Core deposit intangible and other fair value adjustments	2,554		3,868
Excess tax basis of FDIC indemnification asset and clawback liability	—		4,095
Excess tax basis of loans acquired over carrying value	2,059		2,656
Other reserves	9,245		2,926
Goodwill and other intangibles	11,075		—
Lease liability	5,805		—
Other	7,268		6,350
Total deferred tax assets	80,797		41,700


	September 30,
	2020		2019
Deferred tax liabilities:
Goodwill and other intangibles	—		(15,064)
Securities available for sale	(11,749)		(4,419)
Premises and equipment	(7,167)		(5,869)
Deferred REIT income	(8,522)		(8,783)
Right of use asset	(5,399)		—
Other	(251)		(279)
Total deferred tax liabilities	(33,088)		(34,414)
Net deferred tax assets	$	47,709	$	7,286