Note 8. Pension

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


	Three Months Ended
	March 31,
(Dollars in thousands)	2018		2017
Components of net periodic cost:
Service cost	$	90	$	78
Interest cost		138		166
Expected return on plan assets		(279)		(268)
Recognized net actuarial loss		176		137
Net period cost	$	125	$	113

The Bank expects its pension expense to increase to approximately $500 thousand in 2018 compared to $459 thousand in 2017, due primarily to increases in interest costs and recognized net actuarial losses. A pension contribution of $1.0 million was made in first quarter of 2018. The service cost component of pension expense is in the salaries and benefits line on the income statement. All other cost components are in the other expense line on the income statement.