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OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES
 9 Months Ended
Jun. 30, 2025
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 $23.2 million and $24.4 million at June 30, 2025 and September 30, 2024, respectively.

Operating lease liabilities, included in accrued expenses and other liabilities, were $24.5 million and $26.0 million at June 30, 2025 and September 30, 2024, respectively.
The decreases in lease ROU assets and liabilities relate to normal amortization and lease payments made during the nine months ended June 30, 2025, but also include adjustments for lease assignments that occurred as a result of the commercial insurance premium finance business sale during the first 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 June 30, 2025 were as follows:

(Dollars in thousands)
Remaining in 2025$866 
20263,391 
20273,306 
20283,397 
20293,436 
Thereafter13,108 
Total undiscounted future minimum lease payments 27,504 
Discount(3,043)
Total operating lease liabilities$24,461 

The weighted-average discount rate and remaining lease term for operating leases were as follows:

June 30, 2025September 30, 2024
Weighted-average discount rate2.67 %2.45 %
Weighted-average remaining lease term (years)8.228.78

The components of total lease costs for operating leases were as follows:
Three Months Ended June 30,Nine Months Ended June 30,
(Dollars in thousands)2025202420252024
Lease expense$987 $990 $2,904 $3,007 
Short-term and variable lease cost18 21 62 44 
Sublease income(350)(314)(1,053)(953)
Total lease cost for operating leases$655 $697 $1,913 $2,098