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 $994.9 million, $899.7 million, and $772.5 million at December 31, 2017, 2016 and 2015, respectively. Contractually specified servicing fees of approximately $2.4 million, $2.1 million, and $1.8 million were included in mortgage loan servicing fees in the income statement for the years ended December 31, 2017, 2016 and 2015, respectively.

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

($ in thousands)	2017			2016
Carrying amount, beginning of year	$	8,422		$	7,152
Mortgage servicing rights capitalized during the year		2,540			2,542
Mortgage servicing rights amortization during the year		(1,132	)		(1,340	)
Net change in valuation allowance		77			68
Carrying amount, end of year	$	9,907		$	8,422

Valuation allowance:
Beginning of year	$	228		$	296
Reduction		(77	)		(68	)
End of year	$	151		$	228
Fair Value, beginning of period	$	9,656		$	7,760
Fair Value, end of period	$	11,338		$	9,656