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OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES
 3 Months Ended
Dec. 31, 2024
Leases [Abstract]  
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES
Operating lease right-of-use ("ROU") assets, included in other assets, were $22.6 million and $24.4 million at December 31, 2024 and September 30, 2024, respectively.

Operating lease liabilities, included in accrued expenses and other liabilities, were $23.8 million and $26.0 million at December 31, 2024 and September 30, 2024, respectively.
The decreases in lease ROU assets and liabilities relate to normal amortization and lease payments made during the three months ended December 31, 2024, but also include adjustments for lease assignments that occurred as a result of the commercial insurance premium finance business sale during the quarter. Two office locations, Newport Beach, California and Addison, Texas, were included in the sale of the commercial insurance premium finance business and the relevant lease ROU assets and liabilities are no longer reflected in the Company's Condensed Consolidated Financial Statements after the transaction closed. The derecognition of the relevant lease ROU assets and liabilities resulted in a $0.5 million gain on remeasurement that was recognized as part of the overall gain on divestitures from the commercial insurance premium finance business sale. See Note 3. Divestitures to the Condensed Consolidated Financial Statements for further information.

Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at December 31, 2024 were as follows:
(Dollars in thousands)
Remaining in 2025$2,535 
20263,048 
20272,856 
20282,816 
20292,841 
Thereafter12,703 
Total undiscounted future minimum lease payments 26,799 
Discount(3,049)
Total operating lease liabilities$23,750 

The weighted-average discount rate and remaining lease term for operating leases were as follows:
December 31, 2024September 30, 2024
Weighted-average discount rate2.50 %2.45 %
Weighted-average remaining lease term (years)8.918.78

The components of total lease costs for operating leases were as follows:
Three Months Ended December 31,
(Dollars in thousands)20242023
Lease expense$919 $1,025 
Short-term and variable lease cost21 (7)
Sublease income(352)(370)
Total lease cost for operating leases$588 $648