($ 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