North Andover-based Northmark Bank received poor marks on its latest Community Reinvestment Act grade.

The Massachusetts Division of Banks, which conducts its test along with the FDIC, has issued the bank a “needs to improve” grade, the second to worst grade out of the five-tier system just above “substantial noncompliance.”

Although exams are made on a rolling basis, meaning some banks and credit unions have not had an exam in several years, the only other financial institution in the state that received “needs to improve” grade was the Pressers Union Local 12 ILGWU Credit Union in 2015.

The roughly $360 million Northmark Bank got a “needs to improve” grade because the distribution of its borrowers reflects poor penetration among individuals of different income levels, including low- and moderate-income, and businesses of different sizes in its assessment area.

The evaluation covers the period from the bank’s prior evaluation, June 8, 2015, to it current evaluation date on Aug. 6, 2018.

The bank did not originate any home mortgage loans in low-income census tracts in 2016 or 2017, according to its most recent exam.

Northmark Bank performed better when it came to small business loans, as its lending in moderate-income tracts compared favorably to demographic data. Northmark Bank’s lending in moderate-income tracts in 2016 was slightly above the percentage of businesses, and the bank originated even more small business loans in moderate-income tracts in 2017. Still, the bank did not originate any small business loans in low-income census tracts in 2016 or 2017.

Northmark bank’s assessment area includes 54 census tracts in portions of Middlesex and Essex counties including in the communities Andover, Arlington, Lexington, North Andover, North Reading, Reading, Wilmington, Winchester, Woburn and portions of Lawrence and Methuen. In the assessment area, there are three low-income census tracts, two moderate-income census tracts, 17 middle-income census tracts and 32 upper-income census tracts.