INCOME TAXES |
9 Months Ended |
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Sep. 30, 2026 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES | INCOME TAXES For the third quarter of 2026, income tax expense was $18.1 million, resulting in an effective tax rate of 18.2% compared to $18.8 million and an effective tax rate of 20.7% for the comparable period in 2025. For the first nine months of 2026, income tax expense was $55.2 million, resulting in an effective tax rate of 19.2% compared to $48.9 million and an effective tax rate of 20.2% for the comparable period in 2025. The lower effective tax rate in 2026 is primarily driven by the non-taxable bargain purchase gain related to the BankFinancial acquisition and increased tax credit activity, which was partially offset by higher income and nondeductible charitable contributions. At both September 30, 2026 and December 31, 2025, First Financial had no unrecognized tax benefits. As defined by FASB ASC Topic 740-10, Income Taxes, an unrecognized tax benefit is a position that if recognized would favorably impact the effective income tax rate in future periods. First Financial recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. At September 30, 2026 and December 31, 2025, the Company had no interest or penalties recorded. In July 2025, the legislation formally titled “An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14,” which is commonly referred to as the One Big Beautiful Bill (“the Act”) was signed into law. First Financial evaluated the income tax implications of the Act and has applied the new law to current and deferred income tax calculations. First Financial and its subsidiaries are subject to U.S. federal income tax as well as state and local income tax in numerous jurisdictions. Tax years prior to 2023 have been closed and are no longer subject to U.S. federal income tax examinations. Tax years 2023 through 2025 remain open to examination by the federal taxing authority. With limited exception, First Financial is no longer subject to state and local income tax examinations for years prior to 2022.
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