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OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES
6 Months Ended
Mar. 31, 2026
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 $21.9 million and $22.7 million at March 31, 2026 and September 30, 2025, respectively.

Operating lease liabilities, included in accrued expenses and other liabilities, were $23.2 million and $24.0 million at March 31, 2026 and September 30, 2025, respectively.

The decreases in lease ROU assets and liabilities relate to normal amortization and lease payments made during the six months ended March 31, 2026.

Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at March 31, 2026 were as follows:

(Dollars in thousands)
Remaining in 2026$1,799 
20273,497 
20283,591 
20293,633 
20303,426 
Thereafter9,879 
Total undiscounted future minimum lease payments 25,825 
Discount(2,631)
Total operating lease liabilities$23,194 

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

March 31, 2026September 30, 2025
Weighted-average discount rate2.67 %2.65 %
Weighted-average remaining lease term (years)7.447.97

The components of total lease costs for operating leases were as follows:
Three Months Ended March 31,Six Months Ended March 31,
(Dollars in thousands)2026202520262025
Lease expense$908 $998 $1,802 $1,917 
Short-term and variable lease cost28 23 57 44 
Sublease income(399)(351)(811)(703)
Total lease cost for operating leases$537 $670 $1,048 $1,258