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Mortgage Banking and Servicing Rights
 12 Months Ended
Dec. 31, 2020
Mortgage Servicing Rights [Abstract]  
Mortgage Banking and Servicing Rights

Note 9: Mortgage Banking and 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 and $1.2 billion at December 31, 2020 and 2019, respectively. Contractually specified servicing fees of approximately $3.2 million and $2.6 million were included in mortgage loan servicing fees in the income statement for the years ended December 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, beginning of year  $11,017   $11,365 
Mortgage servicing rights capitalized during the year   5,090    2,872 
Mortgage servicing rights amortization during the year   (4,762)   (2,126)
Net change in valuation allowance   (3,586)   (1,094)
Carrying amount, end of year  $7,759   $11,017 
           
Valuation allowance:          
Beginning of year  $1,306   $212 
Increase (reduction)   3,586    1,094 
End of year  $4,892   $1,306 
           
Fair value, beginning of period  $11,864   $12,672 
Fair value, end of period  $7,759   $11,864