Refinancing Loan Question

Hello, I have question on the journal entries for a bank loan. We are a C corp and had 2 existing loans with balances. We got a 3rd loan this year and just rolled all 3 loans into one comprehensive loan. Naturally, there were fees associated with the transaction which were being booked as bank fees expense offset to cash and the consolidated loan was set on our books as a credit to Debt liability and Debit cash for the monies received. However what I think should be the entry does not match the banks loan statement. See below the transaction with sample #s: Loan 1 Balance: $10,000 Loan 2 Balance: $20,000 Loan 3: Loan amount $25,000-fees to be charged $1000 Since Loan 1 and 2 were being consolidated (ie paid off and a whole new Loan 3 created that included the consolidated and paid off loans), I expected the bank to show the following: - loan statement balance of $55,000 (balance of all 3 loans) - fund our account with $25,000 - charge $1000 of fees (direct debit from our account) The statement I actually received from the bank showed a net total Loan amount of $56,000 and the funds deposited in our account showed $25,000-in essence the $1000 fees were rolled into the total loan balance but we did not receive those funds. When I spoke with the loan administrator she said the bank does not fund the money only to turn around and take it out of the account. Not sure if I'm missing something here and how to account for it. In essence they have rolled the fees into the financing but then just deducted those fees and given us the net funds (less fees) Do I just debit Bank fees (expense account on the income statement) for the $1000 and credit the Loan liability account? Since this is being financed it seems odd to expense at one time but short of a contra debt liability account i'm not sure how else to account for it. The $ amount is fairly immaterial (