Note 5: Mortgage Banking and Servicing Rights

Mortgage loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balance of mortgage loans serviced for others approximated $772.5 million and $662.7 million at December 31, 2015 and 2014, respectively. Contractually specified servicing fees of approximately $1.8 million and $1.6 million were included in mortgage loan servicing fees in the income statement for the years ended December 31, 2015 and 2014, respectively.

The following table summarizes mortgage servicing rights capitalized and related amortization, along with activity in the related valuation allowance:

($ in thousands)	2015			2014

Carrying amount, beginning of year	$	5,704		$	5,180
Mortgage servicing rights capitalized during the year		2,214			1,367
Mortgage servicing rights amortization during the year		(882	)		(612	)
Net change in valuation allowance		116			(231	)
Carrying amount, end of year	$	7,152		$	5,704

Valuation allowance:
Beginning of year	$	412		$	181
Reduction		(116	)		231
End of year	$	296		$	412

Fair Value, beginning of period	$	6,358		$	6,237
Fair Value, end of period	$	7,760		$	6,358