v3.26.1
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES
 9 Months Ended
Jun. 30, 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 $21.4 million and $22.7 million at June 30, 2026 and September 30, 2025, respectively. Operating lease liabilities, included in accrued expenses and other liabilities, were $22.7 million and $24.0 million at June 30, 2026 and September 30, 2025, respectively. The decreases in operating lease ROU assets and liabilities relate to normal amortization and lease payments made during the nine months ended June 30, 2026.

Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at June 30, 2026 were as follows:

(Dollars in thousands)
Remaining in 2026$928 
20273,682 
20283,653 
20293,633 
20303,426 
Thereafter9,879 
Total undiscounted future minimum lease payments 25,201 
Discount(2,461)
Total operating lease liabilities$22,740 

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

June 30, 2026September 30, 2025
Weighted-average discount rate2.33 %2.65 %
Weighted-average remaining lease term (years)7.177.97

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)2026202520262025
Lease expense$905 $987 $2,707 $2,904 
Short-term and variable lease cost29 18 86 62 
Sublease income(386)(350)(1,197)(1,053)
Total lease cost for operating leases$548 $655 $1,596 $1,913