6. LOANS RECEIVABLE

Loans receivable are reported net of deferred loan fees. At September 2020, deferred loan fees totaled $6.5 million of which $2.8 million were related to the SBA’s Paycheck Protection Program (“PPP”) loans. At March 31, 2020, deferred loan fees totaled $4.1 million of which there were no deferred loan fees related to SBA PPP loans. Loans receivable are also reported net of discounts and premiums totaling $871,000 and $1.3 million, respectively, as of September 30, 2020, compared to $1.1 million and $1.5 million, respectively, as of March 31, 2020. Loans receivable, excluding loans held for sale, consisted of the following at the dates indicated (in thousands):


	September 30,		March 31,
	2020		2020
Commercial and construction
Commercial business(1)	$	281,670	$	179,029
Commercial real estate		525,977		507,871
Land		14,531		14,026
Multi-family		49,878		58,374
Real estate construction		28,308		64,843
Total commercial and construction		900,364		824,143

Consumer
Real estate one-to-four family		71,940		83,150
Other installment		2,870		4,216
Total consumer		74,810		87,366

Total loans		975,174		911,509
Less: Allowance for loan losses		18,866		12,624
Loans receivable, net	$	956,308	$	898,885

(1) SBA PPP loans totaled $110.8 million and none at September 30, 2020 and March 31, 2020, respectively.

The Company considers its loan portfolio to have very little exposure to sub-prime mortgage loans since the Company has not historically engaged in this type of lending. At September 30, 2020, loans carried at $516.2 million were pledged as collateral to the Federal Home Loan Bank of Des Moines (“FHLB”) and Federal Reserve Bank of San Francisco (“FRB”) pursuant to borrowing agreements.

Substantially all of the Bank’s business activity is with customers located in the states of Washington and Oregon. Loans and extensions of credit outstanding at one time to one borrower are generally limited by federal regulation to 15% of the Bank’s shareholders’ equity, excluding accumulated other comprehensive income (loss). As of September 30, 2020 and March 31, 2020, the Bank had no loans to any one borrower in excess of the regulatory limit.