Note 8. Pension

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



	Three Months Ended September 30				Nine Months Ended September 30
(Dollars in thousands)	2015		2014		2015		2014
Components of net periodic cost:
Service cost	$	92	$	84	$	284	$	253
Interest cost		172		194		522		585
Expected return on plan assets		(296)		(291)		(888)		(872)
Recognized net actuarial loss		123		80		377		243
Net period cost	$	91	$	67	$	295	$	209

The Bank expects its pension expense to increase to approximately $387 thousand in 2015 compared to $276 thousand in 2014. No pension contributions were made or are expected to be made in 2015.

In October, 2014, the Society of Actuaries released new mortality tables for pension plans. The new tables are expected to raise the assumed life of plan participants due to refinements in age and gender distribution of participants. This change is expected to result in higher pension contribution requirements, lower balance sheet funded status, pricier lump-sum payouts, and higher PBGC variable rate premiums. The Bank has not adopted the new mortality tables. If the tables had been adopted at year-end 2014, it is estimated that the new tables would reduce the funded status by $1.6 million and increase the 2015 pension expense by $272 thousand over the current 2015 estimate. The Bank is still in the process of reviewing the effect of the new tables and is also watching the IRS for its decision on adoption of the new table. Therefore an adoption date for the new tables has not been determined.