REAL ESTATE DEVELOPMENT AND CONSTRUCTION

12 Months Ended

Sep. 30, 2016

Real Estate [Abstract]

REAL ESTATE DEVELOPMENT AND CONSTRUCTION

(5) REAL ESTATE DEVELOPMENT AND CONSTRUCTION

The Company developed a parcel of land in New Albany, Indiana for retail purposes through the Bank’s subsidiary, FFCC. The total cost of the development was $7.6 million, and the development costs were partially funded by a loan from another financial institution (see Note 14). On August 12, 2016, the Bank and FFCC executed a purchase and sale agreement for the sale of the development and property owned by the Bank to an unaffiliated third party. The sale closed on September 29, 2016. The net sales proceeds were $10.8 million, $8.8 million of which was allocated to the development owned by FFCC and $2.0 million of which was allocated to property owned by the Bank. The sale of the development resulted in a gain of $1.9 million recognized in noninterest income in the accompanying consolidated statements of income.

 

Real estate development and construction consisted of the following at September 30, 2015:

(In thousands)
Land and land improvements	$	4,159
Office buildings		3,321
Furniture, fixtures and equipment		74
		7,554
Less accumulated depreciation		475
Total	$	7,079

Depreciation expense of $198,000 and $196,000 was recognized for real estate development and construction for the years ended September 30, 2016 and 2015, respectively.