Company: BANFP
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-030159
Chunk: 229

Company: BANCFIRST CORP /OK/
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 229
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 items in Premises and Equipment, NetThe 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 ProgressConstruction 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 AssetsOther 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.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 $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