9. Federal Income Taxes The components of income tax expense for the years ended December 31, 2013 and 2012 are as follows ( in thousands):  2013 2012 Federal:  Current $  618 $  1, 409 Deferred ( benefit)  185 ( 120)  803 $  1, 289 The components of the net deferred tax asset ( liability),  included in other assets ( liabilities) on the balance sheet, consist of the following as of December 31, 2013 and 2012 ( in thousands):  2013 2012 Deferred Tax Assets:  Allowance for loan losses $  664 $  651 Stock -based compensation 57 38 Accrued bonus 40 73 Non - accrual interest receivable 43 45 Unrealized holding losses on available - for -sale securities 13 -  Other 64 64 Total Deferred Tax Assets 881 871 Deferred Tax Liabilities:  Depreciation ( 256) ( 159)  Derivative and fair value adjustment ( 158) ( 162)  Loan origination costs ( 136) ( 81)  Prepaid expenses ( 122) ( 88)  Unrealized holding gains on available - for -sale securities - ( 385)  Total Deferred Tax Liabilities ( 672) ( 875)  Net Deferred Tax Asset ( Liability) $  209 $ ( 4)  The provision for income taxes differs from that computed by applying statutory rates to income before income taxes primarily due to the effects of tax -  exempt income, non - deductible expenses and incentive stock options.  The Bank has had, and is expected to have in the future, banking transactions with its executive officers, directors, their immediate families and affiliated companies ( commonly referred to as related parties) on comparable terms with similar interest rates as those prevailing from time to time for other customers of the Bank. As of December 31,  2013 and 2012, related party loans totaled $ 4, 670, 000 and $ 8, 329, 000,  respectively.  During 2013,  loan advances and repayments $^{totaled $}$1, 680, 000 and $ 5, 339, 000, respectively.  10. Transactions with Executive Officers, Directors and Affiliated Companies 30