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FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS
 12 Months Ended
Sep. 30, 2021
Real Estate [Abstract]  
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS
The following table provides an analysis of changes in foreclosed real estate and repossessed assets:
Fiscal Year Ended September 30,
(Dollars in Thousands)20212020
Balance, beginning of period$9,957 $29,494 
Additions1,659 9,983 
Reductions:
Write-downs591 568 
Sales8,952 23,992 
(Gain) loss on sale(4)4,960 
Total reductions9,539 29,520 
Balance, ending of period$2,077 $9,957 

At September 30, 2021 and 2020, the Company had established a valuation allowance of $1.1 million and $0.5 million for repossessed assets, respectively. As of September 30, 2021 and 2020, the Company had no loans or leases in the process of foreclosure.

During the fiscal year ended September 30, 2020, the Company sold $28.1 million of other real estate owned ("OREO"), which consisted of assets related to a Community Bank agriculture real estate customer. The sale consisted of 30-plus parcels of land and the Company recognized a $5.0 million loss that was included in the "Gain (loss) on sale of other" line on the Consolidated Statements of Operations. The Company also recognized $1.1 million in deferred rental income and $0.2 million in OREO expenses related to these foreclosed properties.