Note 8. Pension

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



	Three Months Ended March 31
(Dollars in thousands)	2017		2016
Components of net periodic cost:
Service cost	$	78	$	81
Interest cost		166		180
Expected return on plan assets		(268)		(293)
Recognized net actuarial loss		137		111
Net period cost	$	113	$	79

The Bank expects its pension expense to decrease to approximately $459 thousand in 2017 compared to $922 thousand in 2016. This decrease is due to a pension settlement expense of approximately $564 thousand that was recorded in the second half of 2016, as a result of lump sum distributions. No pension contributions were made or are expected to be made in 2017.