($ in thousands)

2019

2018

Carrying amount, beginning of year

$

11,365

$

9,907

Mortgage servicing rights capitalized during the year

2,872

2,749

Mortgage servicing rights amortization during the year

(2,126

)

(1,230

)

Net change in valuation allowance

(1,094

)

(61

)

Carrying amount, end of year

$

11,017

$

11,365

Valuation allowance:

Beginning of year

$

212

$

151

Increase (reduction)

1,094

61

End of year

$

1,306

$

212

Fair value, beginning of period

$

12,672

$

11,338

Fair value, end of period

$

11,864

$

12,672