The following is a summary of premises and equipment by classification:


		December 31,
	Estimated Useful Lives	2024			2023
		(Dollars in thousands)
Land		$	55,883		$	49,173
Buildings	10 to 40 years		297,364			288,391
Furniture, fixtures and equipment	3 to 15 years		99,710			94,851
Construction in progress			16,748			4,213
Accumulated depreciation			(173,762	)		(158,034	)
Premises and equipment, net		$	295,943		$	278,594

The Company had $195,000 in construction in progress for retainage payable at December 31, 2024 and December 31, 2023. 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 is related to the renovation of BancFirst Tower, which began in 2018, as well as the renovation of several BancFirst locations. When renovations on the buildings are completed, the asset is reclassified as buildings and depreciated over its applicable useful life.

Other assets includes the cash surrender value of key-man life insurance policies totaling $84.4 million at December 31, 2024 and December 31, 2023.

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 $13.4 million at December 31, 2024 and $13.1 million at December 31, 2023.

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 $58.6 million and $46.4 million at December 31, 2024 and 2023, respectively and are included in other assets on the consolidated balance sheet. The Company recognized tax credits and other tax benefits of $7.4 million, $7.3 million and $6.4 million in 2024, 2023 and 2022, respectively and amortization expense of $6.0 million, $5.6 million and $5.1 million in 2024, 2023 and 2022, respectively resulting from LIHTC investments. Additional contributions are committed during the investment periods through the year 2039. Unfunded commitments to these investments as of December 31, 2024 totaled $34.5 million.

The Company invests in active low-income community businesses that qualify for New Market Tax Credits. New Market Tax Credit (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 $7.5 million and $12.1 million at December 31, 2024 and 2023, respectively, and are included in other assets on the consolidated balance sheet. The Company recognized tax credits of $5.6 million, $5.6 million and $4.7 million in 2024, 2023 and 2022, respectively and amortization expense of $4.6 million, $4.6 million, and $3.9 million in 2024, 2023 and 2022,

respectively resulting from NMTC investments. NMTC investments are funded in full in the year they begin. There are no unfunded commitments.

The Company invests in rehabilitation projects that qualify for Historic Tax Credits. Historic Tax Credits (HTCs) are generated by rehabilitating structures included in the National Register of Historic Places. The rehabilitations must be approved by the State Historic Preservation Office and the National Park Service. The Company invests in a Master Tenant partnership in order to receive the HTCs. Contributions are made to the Master Tenant as needed to complete the project. State HTCs are recognized in full in the year construction is completed. Federal HTCs are allocated over a five-year period once construction is completed. The investments are amortized through tax expense using the proportional amortization method as related tax credits are utilized. The Company does not consolidate these Master Tenant partnerships as variable interest entities due to the control the managing member of the partnership has over the entity.

Total HTC investments were $6.3 million and zero at December 31, 2024 and 2023, respectively, and are included in other assets on the consolidated balance sheet. The Company recognized no tax credits and had no amortization related to HTCs in 2024, 2023, and 2022. Unfunded commitments to these investments as of December 31, 2024 totaled $5.1 million.