Loans

3 Months Ended

Mar. 31, 2022

A summary of loan balances follows:


(in thousands)	March 31, 2022		December 31, 2021
Commercial real estate:
CRE non-owner occupied	$	1,891,022	$	1,603,141
CRE owner occupied	851,434		706,307
Multifamily	839,918		823,500
Farmland	250,600		173,106
Total commercial real estate loans	3,832,974		3,306,054
Consumer:
SFR 1-4 1st DT liens	711,389		666,960
SFR HELOCs and junior liens	362,501		337,513
Other	62,822		67,078
Total consumer loans	1,136,712		1,071,551
Commercial and industrial	500,882		259,355
Construction	303,960		222,281
Agriculture production	69,339		50,811
Leases	8,108		6,572
Total loans, net of deferred loan fees and discounts	$	5,851,975	$	4,916,624
Total principal balance of loans owed, net of charge-offs	$	5,900,663	$	4,946,653
Unamortized net deferred loan fees	(13,780)		(13,922)
Discounts to principal balance of loans owed, net of charge-offs	(34,908)		(16,107)
Total loans, net of unamortized deferred loan fees and discounts	$	5,851,975	$	4,916,624
Allowance for credit losses on loans	$	(96,049)	$	(85,376)

In March 2020 (Round 1) and subsequently in December 2020 (Round 2), the Small Business Administration ("SBA") Paycheck

Protection Program ("PPP") was created to help small businesses keep workers employed during the COVID-19 crisis. Tri Counties

Bank, through its online portal, facilitated the ability for borrowers to open a new deposit account and submit PPP applications during

the entirety of the Programs. The SBA ended PPP and did not accept new borrowing applications, effective May 31, 2021. PPP loan balances included in commercial and industrial loan totals above were $56,605,000 and $61,147,000, net of approximately $1,190,000 and $2,164,000 in deferred fee income as of March 31, 2022 and December 31, 2021, respectively. During the three months ended March 31, 2022, the Company recognized $974,000 in fees on PPP loans as compared with $3,482,000 and $4,978,000 for the three months ended December 31, 2021 and March 31, 2021, respectively. Based on the payment guarantee provided by the SBA as well as the expected short-term duration of the PPP loans acquired from VRB, the fair value of these loans approximates the principal balance outstanding as of the merger date, and therefore, no purchase discount was recorded.