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FORECLOSURED REAL ESTATE AND REPOSSESSED ASSETS
 6 Months Ended
Mar. 31, 2021
Real Estate [Abstract]  
FORECLOSURED 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:

Six Months Ended March 31,
(Dollars in Thousands)20212020
Balance, beginning of period$9,957 $29,494 
Additions9 5,983 
Reductions:
Write-downs466 104 
Sales8,021 23,085 
(Gain) loss on sale(4)5,039 
Total reductions8,483 28,228 
Balance, ending of period$1,483 $7,249 

At March 31, 2021 and September 30, 2020, the Company had established a valuation allowance of $1.0 million and $0.5 million for repossessed assets, respectively. As of March 31, 2021 and September 30, 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 Condensed 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.