OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES

12 Months Ended

Sep. 30, 2023

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 $26.9 million and $30.1 million at September 30, 2023 and 2022, respectively.

Operating lease liabilities, included in accrued expenses and other liabilities, were $28.8 million and $32.1 million at September 30, 2023 and 2022, respectively.

Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities at September 30, 2023 were as follows:

(Dollars in thousands)
2024	$	3,913
2025	3,718
2026	3,195
2027	3,092
2028	3,803
Thereafter	14,836
Total undiscounted future minimum lease payments	32,557
Discount	(3,724)
Total operating lease liabilities	$	28,833

The weighted-average discount rate and remaining lease term for operating leases at September 30, 2023 were as follows:

Weighted-average discount rate	2.38	%
Weighted-average remaining lease term (years)	9.66

The components of total lease costs for operating leases were as follows:

	Fiscal Year Ended September 30,
(Dollars in thousands)	2023		2022
Lease expense	$	3,951	$	4,431
Short-term and variable lease cost	142		194
ROU asset impairment	—		670
Sublease income	(1,409)		(1,267)
Total lease cost for operating leases	$	2,684	$	4,028