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Mortgage Servicing Rights
 3 Months Ended
Mar. 31, 2020
Mortgage Servicing Rights [Abstract]  
Mortgage Banking and Servicing Rights

NOTE 5 – MORTGAGE SERVICING RIGHTS


Mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of mortgage loans serviced for others approximated $1.2 billion at March 31, 2020 and $1.2 billion at December 31, 2019. Contractually specified servicing fees of approximately $0.8 million and $0.7 million were included in mortgage loan servicing fees in the income statement for the three months ended March 31, 2020 and 2019, respectively.


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


($ in thousands)  2020   2019 
         
Carrying amount, January 1  $11,017   $11,365 
Mortgage servicing rights capitalized during the year   766    436 
Mortgage servicing rights amortization during the year   (597)   (255)
Net change in valuation allowance   (2,212)   (708)
Carrying amount, March 31  $8,974   $10,838 
           
Valuation allowance:          
January 1  $1,306   $212 
Increase (reduction)   2,212    708 
           
March 31  $3,518   $920