(a) General. The FDIC examines State savings associations pursuant to authority conferred by 12 U.S.C. 1463 and the requirements of 12 U.S.C. 1820(d). The FDIC is required to conduct a full-scope, on-site examination of every State savings association at least once during each 12-month period.
(b) 18-month rule for certain small institutions. The FDIC may conduct a full-scope, on-site examination of a State savings association at least once during each 18-month period, rather than each 12-month period as provided in paragraph (a) of this section, if the following conditions are satisfied:
(1) The State savings association has total assets of less than $500 million;
(2) The State savings association is well capitalized as defined in Sec. 390.453;
(3) At its most recent examination, the FDIC--
(i) Assigned the State savings association a rating of 1 or 2 for management as part of the State savings association's composite rating under the Uniform Financial Institutions Rating System (commonly referred to as CAMELS), and
(ii) Determined that the State savings association was in outstanding or good condition, that is, it received a composite rating, as defined in Sec. 390.101(c), of 1 or 2;
(4) The State savings association currently is not subject to a formal enforcement proceeding or order by the FDIC; and
(5) No person acquired control of the State savings association during the preceding 12-month period in which a full-scope, on-site examination would have been required but for this section.
(c) Authority to conduct more frequent examinations. This section does not limit the authority of the FDIC to examine any State savings association as frequently as the agency deems necessary.