Note 9. Pension

The components of pension expense for the periods presented are as follows:



	Three Months Ended June 30				Six Months Ended June 30
(Dollars in thousands)	2016		2015		2016		2015
Components of net periodic cost:
Service cost	$	83	$	92	$	164	$	192
Interest cost		180		172		360		350
Expected return on plan assets		(290)		(296)		(583)		(592)
Recognized net actuarial loss		120		123		231		254
Net period cost	$	93	$	91	$	172	$	204

The Bank expects its pension expense to increase to approximately $809 thousand in 2016 compared to $387 thousand in 2015, due to a pension settlement expense of approximately $450,000 that will be recorded during the second half of 2016. No pension contributions were made or are expected to be made in 2016.