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Mortgage Servicing Rights
 9 Months Ended
Sep. 30, 2020
Mortgage Servicing Rights [Abstract]  
MORTGAGE SERVICING RIGHTS

NOTE 7 – 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 $1.3 billion at September 30, 2020 and $1.2 billion at December 31, 2019. Contractually specified servicing fees of approximately $2.4 million and $2.1 million were included in mortgage loan servicing fees in the consolidated income statement for the nine months ended September 30, 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   3,971    1,895 
Mortgage servicing rights amortization during the year   (3,479)   (1,415)
Net change in valuation allowance   (2,974)   (1,398)
Carrying amount, September 30  $8,535   $10,447 
           
Valuation allowance:          
January 1  $1,306   $212 
Increase   2,974    1,398 
September 30  $4,280   $1,610