($ in thousands)

2022

2021

Carrying amount, beginning of year

$

12,034

$

7,759

Mortgage servicing rights capitalized during the year

1,939

4,724

Mortgage servicing rights amortization during the year

(1,749

)

(3,885

)

Net change in valuation allowance

1,279

3,436

Carrying amount, end of year

$

13,503

$

12,034

Valuation allowance:

Beginning of year

$

1,456

$

4,892

Increase (reduction)

(1,279

)

(3,436

)

End of year

$

177

$

1,456

Fair value, beginning of period

$

12,629

$

7,759

Fair value, end of period

$

15,754

$

12,629