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


		December 31,
	Estimated Useful Lives	2022			2021
		(Dollars in thousands)
Land		$	47,856		$	44,588
Buildings	10 to 40 years		266,660			256,738
Furniture, fixtures and equipment	3 to 15 years		91,340			89,058
Construction in progress			16,613			12,335
Accumulated depreciation			(144,381	)		(133,672	)
Premises and equipment, net		$	278,088		$	269,047

The Company had $1.1 million and $1.0 million in construction in progress for retainage payable at December 31, 2022 and 2021, respectively. Retainage payable is not remitted to the vendor until completion of the project and is therefore not included in the consolidated statement of cash flow.

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 includes the cash surrender value of key-man life insurance policies totaling $82.7 million at December 31, 2022 and $81.4 million at December 31, 2021.

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 $15.5 million at December 31, 2022 and $10.6 million at December 31, 2021.

The balance of other assets included equity interests of previous borrowers in the oil and gas industry, which were received through bankruptcy proceedings, which totaled $21.4 million at December 31, 2022 and $16.4 million at December 31, 2021. 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.

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 $24.7 million and $20.1 million at December 31, 2022 and 2021, respectively and are included in other assets on the consolidated balance sheet. The Company recognized tax credits and other tax benefits of $6.4 million, $6.5 million and $5.6 million in 2022, 2021 and 2020, respectively and amortization expense of $5.1 million, $5.5 million and $4.6 million in 2022, 2021 and 2020, respectively resulting from LIHTC investments. Additional contributions are committed during the investment periods through the year 2034. Unfunded commitments to these investments as of December 31, 2022 totaled $22.3 million.

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 (CDE) 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 CDEs 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 other noninterest expense using the effective yield 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 $11.3 million and $15.2 million at December 31, 2022 and 2021, respectively and are included in other assets on the consolidated balance sheet. The Company recognized tax credits of $4.7 million, $4.0 million and $4.0 million in 2022, 2021 and 2020, respectively and amortization expense of $3.9 million, $3.3 million, and $3.3 million in 2022, 2021 and 2020, respectively resulting from NMTC investments. NMTC investments are funded in full in the year they begin. There are no unfunded commitments.