Company: BANFP
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000950170-25-030159
Chunk: 230

Company: BANCFIRST CORP /OK/
Filing Date: 2025-02-28
Form: 10-K
Item: Item 1B
Chunk 230
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.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. New Market Tax Credit Investments 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, 

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