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Premises and Equipment, Net and Other Assets | 12 Months Ended
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Dec. 31, 2023
Property, Plant and Equipment [Abstract] |
Premises and Equipment, Net and Other Assets | (6) PREMISES AND EQUIPMENT, NET AND OTHER ASSETS The following is a summary of premises and equipment by classification:
|  |  |  | December 31, |
|  | Estimated Useful Lives |  | 2023 |  |  | 2022 |
|  |  | (Dollars in thousands) |
Land |  |  |  | $ | 49,173 |  |  | $ | 47,856 |
Buildings |  | 10 to 40 years |  |  | 288,391 |  |  |  | 266,660 |
Furniture, fixtures and equipment |  | 3 to 15 years |  |  | 94,851 |  |  |  | 91,340 |
Construction in progress |  |  |  |  | 4,213 |  |  |  | 16,613 |
Accumulated depreciation |  |  |  |  | (158,034 | ) |  |  | (144,381 | )
Premises and equipment, net |  |  |  | $ | 278,594 |  |  | $ | 278,088 |
Non-cash items in Premises and Equipment, Net The Company h ad $195,000 in construction in progress for retainage payable at December 31, 2023 and $1.1 million at December 31, 2022. Retainage payable is not remitted to the vendor until completion of the project and is therefore not included in the consolidated statements of cash flow. Construction in Progress Construction in progress included in the table above is primarily related to the renovation of BancFirst Tower, which began in 2018. When renovations on the building are completed, the asset is reclassified as buildings and depreciated over its applicable useful life. Other Assets Other assets includes the cash surrender value of key-man life insurance policies totaling $84.4 million at December 31, 2023 and $82.7 million at December 31, 2022. Equity securities are reported in other assets on the consolidated balance sheet. The Company invests in equity securities without readily determinable fair values. These equity securities are reported at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The realized and unrealized gains and losses are reported as securities transactions in the noninterest income section of the consolidated statements of comprehensive income. The balance of equity securities was $13.1 million at December 31, 2023 and $15.5 million at December 31, 2022. The balance of other assets included an equity interest of a former borrower in the oil and gas industry, which was received through bankruptcy proceedings, with a value of $21.4 million at December 31, 2022. This equity interest was sold during the second quarter of 2023 resulting in a zero balance at December 31, 2023. Under the equity method, the carrying value of a bank’s investment in an investee is originally recorded at cost but is adjusted periodically to record as income the bank’s proportionate share of the investee’s earnings or losses and decreased by the amount of cash dividends or similar distributions received from the investee. Low Income Housing Tax Credit Investments The Company invests in affordable housing projects that qualify for the low-income housing tax credit (LIHTC), which is designed to promote private development of low-income housing. These investments generate a return primarily through realization of federal tax credits, and also through a tax deduction generated by operating losses of the investments. The investments are amortized through tax expense using the proportional amortization method as related tax credits are utilized. The Company is periodically required to provide additional contributions at the discretion of the project sponsors. Although in some cases the Company’s investment may exceed 50% of the equity interest in an entity, the Company does not consolidate these structures as variable interest entities due to the project sponsor’s ability to manage the projects, which is indicative of power over them. Total LIHTC investments were $46.4 million and $24.7 million at December 31, 2023 and 2022, respectively and are included in other assets on the consolidated balance sheet. The Company recognized tax credits and other tax benefits of $7.3 mi llion, $6.4 million and $6.5 million in 2023, 2022 and 2021, respectively and amortization expense of $5.6 million, $5.1 million and $5.5 million in 2023, 2022 and 2021, respectively resulting from LIHTC investments. Additional contributions are committed during the investment periods through the ye ar 2035. Unfunded commitments to these investments as of December 31, 2023 tot aled $26.8 mil lion. New Market Tax Credit Investments The Company also invests in active low-income community businesses that qualify for New Market Tax Credits (NMTC). NMTC investments are made through Community Development Entities (CDEs) and such entities are qualified through the US Department of the Treasury. NMTCs are earned for a qualified entity investment made by a taxpayer in a CDE if substantially all of the investment is used by the CDE to make qualified investments. It is through its equity contributions into the CDE entities that the Company is able to receive the benefits of the NMTCs. The amount of the NMTC is equal to 39% of the qualified investment taken over a seven year period. The investments are amortized through tax expense using the proportional amortization method as related tax credits are utilized. The Company does not consolidate these CDEs as variable interest entities due to the control the allocatee of the tax credits has over the entity. Total NMTC investments were $12.1 million and $11.3 million at December 31, 2023 and 2022, respectively, and are included in other assets on the consolidated balance sheet. The Company recognized tax cred its of $5.6 m illion, $4.7 million and $4.0 million in 2023, 2022 and 2021, respectively and amortization expe nse of $4.6 m illion, $3.9 million, and $3.3 million in 2023, 2022 and 2021, respectively resulting from NMTC investments. NMTC investments are funded in full in the year they begin. There are no unfunded commitments.

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