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FORECLOSURED REAL ESTATE AND REPOSSESSED ASSETS
 9 Months Ended
Jun. 30, 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:
Nine Months Ended June 30,
(Dollars in Thousands)20212020
Balance, beginning of period$9,957 $29,494 
Additions9 5,983 
Reductions:
Write-downs481 568 
Sales8,285 23,086 
(Gain) loss on sale(4)5,039 
Total reductions8,762 28,693 
Balance, ending of period$1,204 $6,784 

At June 30, 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 June 30, 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.