($ in thousands)

2021

2020

Carrying amount, beginning of year

$

7,759

$

11,017

Mortgage servicing rights capitalized during the year

4,724

5,090

Mortgage servicing rights amortization during the year

(3,885

)

(4,762

)

Net change in valuation allowance

3,436

(3,586

)

Carrying amount, end of year

$

12,034

$

7,759

Valuation allowance:

Beginning of year

$

4,892

$

1,306

Increase (reduction)

(3,436

)

3,586

End of year

$

1,456

$

4,892

Fair value, beginning of period

$

7,759

$

11,864

Fair value, end of period

$

12,629

$

7,759