Income Taxes (Tables)

12 Months Ended

Dec. 31, 2018

Schedule of Components of Income Tax Expense (Benefit)

The current and deferred amounts of income tax expense (benefit) for the years ended December 31, 2018, September 30, 2017 and 2016, and the three months ended December 31, 2017 are as follows:



	Year ended December 31,			Three Months Ended December 31,			Years Ended September 30,
	2018			2017			2017			2016
	(In thousands)
Current:
Federal	$	11,284		$	630		$	16,198		$	13,209
State	5,129			862			1,236			664
Total current	16,413			1,492			17,434			13,873

Deferred:
Federal	(4,901		)	7,530			(1,454		)	2,743
State	(589		)	(39		)	28			187
Total deferred	(5,490		)	7,491			(1,426		)	2,930
	$	10,923		$	8,983		$	16,008		$	16,803

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation between the amount of reported total income tax expense and the amount computed by multiplying the applicable statutory income tax rate (35% for the 2017 and 2016 periods presented below, and 21% for the 2018 period) is as follows:



	Year ended December 31,			Three Months Ended December 31,			September 30,
	2018			2017			2017			2016
	(In thousands)

Tax expense at applicable statutory rate	$	7,067		$	4,431		$	16,478		$	17,415
Increase (decrease) in taxes resulting from:
State tax, net of federal income tax benefit	3,587			535			822			553
ESOP fair market value adjustment	202			—			—			—
Tax exempt interest income	(4		)	(2		)	(50		)	(28		)
Income from Bank-owned life insurance	(812		)	(381		)	(1,589		)	(1,405		)
Dividend received deduction	(16		)	(10		)	(40		)	(39		)
Impact of tax reform	—			4,700			—			—
Other, net	899			(290		)	387			307
	$	10,923		$	8,983		$	16,008		$	16,803

Schedule of Deferred Tax Assets and Liabilities

The net deferred tax asset is included in other assets in the Consolidated Statements of Financial Condition. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2018 and 2017 are as follows:

(12) Income Taxes (continued)



	At December 31,
	2018			2017
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	13,251		$	12,584
Post retirement benefit	3,720			3,414
Deferred compensation	2,228			1,939
Depreciation	1,042			949
Retirement income maintenance plan	1,602			1,455
ESOP	128			—
Stock-based compensation	35			—
Reserve for uncollected interest	24			62
Net unrealized losses on securities and defined benefit plans	19,060			18,221
State NOL	2,063			2,476
Alternative minimum assessment carryforwards	2,156			2,156
Charitable contribution carryforward	6,085			—
Other items	670			1,595
Gross deferred tax assets	52,064			44,851
Valuation allowance	(2,388		)	(2,786		)
	49,676			42,065
Deferred tax liabilities:
Pension expense	26,071			26,234
Deferred loan costs	5,736			4,257
Intangible assets	1,621			1,642
Other items	34			48
Total gross deferred tax liabilities	33,462			32,181
Net deferred tax asset	$	16,214		$	9,884