($ in thousands)

2023

2022

Carrying amount, beginning of year

$

13,503

$

12,034

Mortgage servicing rights capitalized during the year

1,695

1,939

Mortgage servicing rights amortization during the year

(1,242

)

(1,749

)

Net change in valuation allowance

(50

)

1,279

Carrying amount, end of year

$

13,906

$

13,503

Valuation allowance:

Beginning of year

$

177

$

1,456

Increase (reduction)

50

(1,279

)

End of year

$

227

$

177

Fair value, beginning of period

$

15,754

$

12,629

Fair value, end of period

$

17,125

$

15,754