Note 8. Pension

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


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(Dollars in thousands)	2017		2016		2017		2016
Components of net periodic cost:
Service cost	$	80	$	83	$	237	$	247
Interest cost		167		180		500		540
Expected return on plan assets		(268)		(290)		(804)		(873)
Settlement expense		—		225		—		225
Recognized net actuarial loss		137		120		411		351
Net period cost	$	116	$	318	$	344	$	490

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.