Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Components of Income Tax Expense (Benefit)

The current and deferred amounts of income tax expense (benefit) for the years ended December 31, 2019 and 2018, September 30, 2017, and the three months ended December 31, 2017 are as follows:



	Years Ended December 31,						Three Months Ended December 31,			Year Ended September 30,
	2019			2018			2017			2017
	(In thousands)
Current:
Federal	$	5,933		$	11,284		$	630		$	16,198
State	2,905			5,129			862			1,236
Total current	8,838			16,413			1,492			17,434

Deferred:
Federal	8,275			(4,901		)	7,530			(1,454		)
State	(748		)	(589		)	(39		)	28
Total deferred	7,527			(5,490		)	7,491			(1,426		)
Total income tax expense	$	16,365		$	10,923		$	8,983		$	16,008

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 federal income tax rate (21% for the 2019 and 2018 periods, and 35% for the 2017 periods) is as follows:



	Years Ended December 31,						Three Months Ended December 31,			Year Ended September 30,
	2019			2018			2017			2017
	(In thousands)

Tax expense at applicable statutory rate	$	14,927		$	7,067		$	4,431		$	16,478
Increase (decrease) in taxes resulting from:
State tax, net of federal income tax benefit	1,704			3,587			535			822
ESOP fair market value adjustment	272			202			—			—
Tax exempt interest income	(6		)	(4		)	(2		)	(50		)
Income from Bank-owned life insurance	(1,246		)	(812		)	(381		)	(1,589		)
Dividend received deduction	(8		)	(16		)	(10		)	(40		)
Non-deductible merger-related expenses	222			—			—			—
Non-deductible compensation expense	398			—			—			—
Impact of tax reform	—			—			4,700			—
Other, net	102			899			(290		)	387
Total income tax expense	$	16,365		$	10,923		$	8,983		$	16,008

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2019 and 2018 are as follows:



	At December 31,
	2019			2018
	(In thousands)
Deferred tax assets:
Allowance for loan losses	$	13,114		$	13,251
Post-retirement benefits	4,089			3,720
Deferred compensation	2,085			2,228
Depreciation	1,002			1,042
Retirement Income Maintenance plan	1,725			1,602
ESOP	301			128
Stock-based compensation	788			35
Reserve for uncollected interest	54			24
Net unrealized losses on debt securities and defined benefit plans	18,374			19,060
Federal and State NOLs	8,333			2,063
Alternative minimum assessment carryforwards	2,156			2,156
Charitable contribution carryforward	5,981			6,085
Purchase accounting	665			—
Other items	332			670
Gross deferred tax assets	58,999			52,064
Valuation allowance	(7,442		)	(2,388		)
	51,557			49,676
Deferred tax liabilities:
Pension expense	33,856			26,071
Deferred loan costs	5,911			5,736
Intangible assets	1,215			1,621
Other items	266			34
Total gross deferred tax liabilities	41,248			33,462
Net deferred tax asset	$	10,309		$	16,214