By nature, banks like United Bancorp are exposed to risky assets, by lending to borrowers who may not be able to repay their loans. Generally, loans that are "bad" and cannot be recovered by the bank should make up less than 3% of its total loans. When these loans are not repaid, they are written off as expenses which comes out directly from United Bancorp's profit. Since bad loans only make up an insignificant 0.30% of its total assets, the bank may have very strict risk management - or perhaps the risks in its portfolio have not eventuated yet.