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INCOME TAXES
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXESFor the third quarter of 2022, the Company recorded an income tax benefit of $8.6 million, resulting in an effective tax rate of negative 18.3% compared with income tax expense of $7.0 million and an effective tax rate of 10.5% for the comparable period in 2021. For the first nine months of 2022, income tax expense was $13.7 million, resulting in an effective tax rate of 8.5%
compared with income tax expense of $28.1 million and an effective tax rate of 15.1% for the comparable period in 2021. The significant decrease in the effective tax rate is due to tax credits realized during the period, somewhat offset by higher forecasted income in the first nine months of 2022 compared to the first nine months of 2021.

At both September 30, 2022 and December 31, 2021, First Financial had $1.9 million of unrecognized tax benefits, as determined under FASB ASC Topic 740-10, Income Taxes, that if recognized would favorably impact the effective income tax rate in future periods. The unrecognized tax benefits relate to state income tax exposures where the Company believes it is likely that, upon examination, a state may take a position contrary to the position taken by First Financial. The Company believes that resolution regarding its uncertain tax positions is reasonably possible within the next twelve months and could result in full, partial or no recognition of the benefit. First Financial recognizes interest accrued related to unrecognized tax benefits and penalties as income tax expense. At September 30, 2022 and December 31, 2021, the Company had no interest or penalties recorded.

First Financial and its subsidiaries are subject to U.S. federal income tax as well as state and local income tax in several jurisdictions.  Tax years prior to 2018 have been closed and are no longer subject to U.S. federal income tax examinations. Tax years 2018 through 2021 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 2017.