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DIVESTITURES | 12 Months Ended
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Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract] |
DIVESTITURES | DIVESTITURES On the Closing Date, the Company sold the Bank's Community Bank division, a component of the Company's Corporate segment, to Central Bank, a state-chartered bank headquartered in Storm Lake, Iowa. The sale included all of the Community Bank division's deposits, branch locations, fixed assets and employees and a portion of the Community Bank division’s loan portfolio. The Company has summarized the results of the transaction below.
(Dollars in Thousands) | Fair Value at February 29, 2020
Cash and cash equivalents | $ | 2,504 |
Loans | 268,584 |
Premises, furniture and equipment | 4,945 |
Other assets | 1,250 |
Total assets | $ | 277,283 |
Deposits | $ | 290,493 |
Other liabilities | 1,720 |
Total liabilities | $ | 292,213 |
Net assets | $ | (14,930) |
Purchase price | 4,345 |
Gain on sale | $ | 19,275 |
The $19.3 million gain on sale (before tax) was recognized within noninterest income on the Company's Consolidated Statements of Operations for the fiscal year ended September 30, 2020. In addition to what's reflected above, the Company also recognized $0.6 million, $0.2 million, $0.8 million, and $0.3 million in legal, IT, consulting, and nonrecurring compensation expenses related to the sale of the Community Bank division, respectively. The Company entered a servicing agreement with Central Bank for the retained Community Bank loan portfolio that became effective on the Closing Date. The Company recognized $3.5 million in servicing fee expense during the fiscal year ended September 30, 2020. On August 4, 2020 and September 17, 2020, the Company sold an additional $58.6 million and $76.4 million, respectively, of the retained Community Bank portfolio to Central Bank. The sales did not result in any material gain to the Company. As of September 30, 2020, the Company had $130.1 million of community bank loans classified as held for sale and expects to sell those loans during the first quarter of fiscal year 2021. See Note 5. Loans and Leases, Net, and Note 26. Subsequent Events, for additional information. The Company has summarized the Community Bank division results for the three months and fiscal year ended September 30, 2020 below.
(Dollars in Thousands) | Community Bank Sold(1) |  | Community Bank Retained(2) |  | Total Community Bank
Three Months Ended September 30, 2020 |  |  |  |  |
Net interest income | $ | — |  |  | $ | 9,045 |  |  | $ | 9,045 |
(Reversal) Provision for loan and lease losses | (2,470) |  |  | 4,370 |  |  | 1,900 |
Noninterest income | — |  |  | 5 |  |  | 5 |
Noninterest expense | 327 |  |  | 2,646 |  |  | 2,973 |
Net income (loss) before income tax expense | $ | 2,143 |  |  | $ | 2,034 |  |  | $ | 4,177 |
Fiscal Year Ended September 30, 2020 |  |  |  |  |
Net interest income | $ | 2,512 |  |  | $ | 34,393 |  |  | $ | 36,905 |
(Reversal) Provision for loan and lease losses | (4,711) |  |  | 18,891 |  |  | 14,180 |
Noninterest income | 19,694 |  |  | (3,468) |  |  | 16,226 |
Noninterest expense | 5,282 |  |  | 7,759 |  |  | 13,041 |
Net income (loss) before income tax expense | $ | 21,635 |  |  | $ | 4,275 |  |  | $ | 25,910 |
(1) Reflects the activity of the assets and liabilities included in the disposal of the Community Bank division through September 30, 2020. (2) Reflects the activity of the retained Community Bank loan portfolio as of September 30, 2020.

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -URI http://asc.fasb.org/topic&trid=2155823 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=2122178 + Details
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