BANCFIRST CORP /OK/ Income Taxes Disclosure
(12) INCOME TAXES
Income taxes paid, net of refunds, disaggregated by federal, state and foreign are as follows:
|
|
Year Ended December 31, |
|
|
|
|
2025 |
|
|
|
|
(Dollars in thousands) |
|
|
U.S. federal tax |
|
$ |
46,800 |
|
U.S. state and local tax |
|
|
|
|
Oklahoma |
|
|
8,100 |
|
Other |
|
|
233 |
|
Non-U.S. tax |
|
|
— |
|
Total taxes paid |
|
$ |
55,133 |
|
The components of the Company’s income tax expense (benefit) are as follows:
|
|
Year Ended December 31, |
|
|||||||||
|
|
2025 |
|
|
2024 |
|
|
2023 |
|
|||
|
|
(Dollars in thousands) |
|
|||||||||
Current taxes: |
|
|
|
|
|
|
|
|
|
|||
Federal |
|
$ |
60,118 |
|
|
$ |
52,626 |
|
|
$ |
53,247 |
|
State |
|
|
5,294 |
|
|
|
8,504 |
|
|
|
7,023 |
|
Deferred taxes: |
|
|
|
|
|
|
|
|
|
|||
Federal |
|
|
(828 |
) |
|
|
(2,146 |
) |
|
|
(2,503 |
) |
State |
|
|
(76 |
) |
|
|
(57 |
) |
|
|
(284 |
) |
Total income taxes |
|
$ |
64,508 |
|
|
$ |
58,927 |
|
|
$ |
57,483 |
|
Income tax expense (benefit) applicable to securities transactions approximated $80,000, $20,000 and $(384,000) for the years ended December 31, 2025, 2024 and 2023, respectively.
There were no activities or transaction that had foreign income taxes or cross-border tax effects during the reported periods. The following is a reconciliation of the Company's U.S. federal statutory income tax rate to its effective tax rate:
|
|
Year Ended December 31, |
|
|||||
|
|
2025 |
|
|||||
|
|
Amount |
|
|
Rate |
|
||
|
|
(Dollars in thousands) |
|
|||||
U.S. federal statutory tax rate |
|
$ |
64,029 |
|
|
|
21.00 |
% |
, net of federal tax effect (1) |
|
|
6,172 |
|
|
|
2.02 |
|
Foreign tax effects |
|
|
— |
|
|
|
— |
|
Changes in tax laws or rates enacted in the current period |
|
|
— |
|
|
|
— |
|
Cross-border tax laws |
|
|
— |
|
|
|
— |
|
Tax credits, net of amortization |
|
|
(3,146 |
) |
|
|
(1.03 |
) |
Changes in valuation allowances |
|
|
— |
|
|
|
— |
|
Nontaxable or nondeductible Items |
|
|
(2,914 |
) |
|
|
(0.95 |
) |
Changes in unrecognized tax benefits |
|
|
— |
|
|
|
— |
|
Other adjustments |
|
|
367 |
|
|
|
0.12 |
|
Effective tax rate |
|
$ |
64,508 |
|
|
|
21.16 |
% |
(1) State taxes in Oklahoma made up the majority (greater than 50 percent) of the tax effect in this category. |
|
|||||||
A reconciliation between reported income tax expense and the amounts computed by applying the U.S. federal statutory income tax rate of 21% to income before income taxes is presented in the following table.
|
|
Year Ended December 31, |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
|
|
(Dollars in thousands) |
|
|||||
Income tax expense at the federal statutory tax rate |
|
$ |
57,809 |
|
|
$ |
56,689 |
|
Increase (decrease) in income tax expense from: |
|
|
|
|
|
|
||
Tax-exempt income, net |
|
|
(489 |
) |
|
|
(343 |
) |
Modified endowment life contracts |
|
|
(424 |
) |
|
|
(497 |
) |
Share based compensation excess tax benefit |
|
|
(3,557 |
) |
|
|
(786 |
) |
Tax deductible dividends paid on ESOP |
|
|
(511 |
) |
|
|
(505 |
) |
State tax expense, net of federal tax benefit |
|
|
6,162 |
|
|
|
4,945 |
|
Utilization of tax credits: |
|
|
|
|
|
|
||
New markets tax credits, net of amortization |
|
|
(777 |
) |
|
|
(777 |
) |
Low-income housing tax credits, net of amortization |
|
|
(1,226 |
) |
|
|
(1,106 |
) |
Other tax credits, net of amortization |
|
|
(397 |
) |
|
|
(192 |
) |
Other, net |
|
|
2,337 |
|
|
|
55 |
|
Total income tax expense |
|
$ |
58,927 |
|
|
$ |
57,483 |
|
The net deferred tax asset consisted of the following and is reported in other assets:
|
|
December 31, |
|
|||||
|
|
2025 |
|
|
2024 |
|
||
|
|
(Dollars in thousands) |
|
|||||
Unrealized net losses on securities |
|
$ |
2,568 |
|
|
$ |
10,191 |
|
Provision for credit losses |
|
|
25,344 |
|
|
|
23,598 |
|
Write-downs of other real estate owned |
|
|
297 |
|
|
|
— |
|
Deferred compensation |
|
|
2,971 |
|
|
|
2,947 |
|
Stock-based compensation |
|
|
2,357 |
|
|
|
2,178 |
|
Investments in partnership interests |
|
|
8,910 |
|
|
|
8,319 |
|
Other |
|
|
1,645 |
|
|
|
1,284 |
|
Gross deferred tax assets |
|
|
44,092 |
|
|
|
48,517 |
|
Intangibles |
|
|
(7,042 |
) |
|
|
(4,929 |
) |
Basis difference related to tax credits |
|
|
(7,416 |
) |
|
|
(6,806 |
) |
Depreciation |
|
|
(19,778 |
) |
|
|
(19,406 |
) |
Prepaid expense deducted |
|
|
(1,443 |
) |
|
|
(1,243 |
) |
Other |
|
|
(189 |
) |
|
|
(308 |
) |
Gross deferred tax liabilities |
|
|
(35,868 |
) |
|
|
(32,692 |
) |
Net deferred tax asset |
|
$ |
8,224 |
|
|
$ |
15,825 |
|
The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if applicable, in income tax expense. During the years ended December 31, 2025, 2024 and 2023, the Company did not recognize or accrue any interest and penalties related to unrecognized tax benefits. Federal and various state income tax statutes dictate that tax returns filed in any of the previous three reporting periods remain open to examination, which includes tax return years 2022 to 2024. The Company has no open examinations with either the Internal Revenue Service or any state agency.
Management performs an analysis of the Company’s tax position annually and believes it is more likely than not that all of its tax positions will be utilized in future years.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 26, 2026 | Showing above |
| 2024 | Feb 28, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 24, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 28, 2020 | |
| 2017 | Mar 1, 2018 | |
| 2016 | Mar 7, 2017 | |
| 2015 | Mar 11, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.