Territorial Bancorp Inc.’s net income increased 5.2 percent in the second quarter as loan growth surged double digits amid record median prices in Honolulu’s real estate market.

The parent of the state’s fifth-largest bank reported Friday that earnings rose to $4 million, or 43 cents a share, to beat analysts’ consensus estimate by 2 cents.

In the year-earlier quarter, Territorial had earnings of $3.8 million, or 41 cents a share.

Territorial Savings Bank, which generates more than 95 percent of its loans from residential mortgages, produced a 13.4 percent increase in loans to $1.26 billion from $1.11 billion in the year-earlier quarter.

The bank also maintained its quarterly dividend at 18 cents a share. It will be payable Aug. 26 to stockholders of record as of Aug. 12.

Territorial’s stock closed down 13 cents at $26.90 on Friday. The earnings were reported after the market closed.

“Hawaii’s strong economy has allowed us to grow our loan portfolio,” Territorial Chairman and CEO Allan Kitagawa said. “Our strong performance will allow us to pay our 27th consecutive dividend.”

Territorial also said it plans to open its 29th branch later this year across the street from the Walmart parking garage at 735 Keeaumoku St. in the location formerly occupied by Morning Glory.

The bank had another strong quarter in deposits as they rose 7 percent to $1.47 billion from $1.37 billion in the year-earlier period. Assets increased 6.2 percent to $1.85 billion from $1.74 billion.

The bank’s net interest income, the difference between the interest Territorial pays on deposits and the interest it receives on loans, rose 3.9 percent to $14.6 million from $14.1 million in the year-earlier quarter. Its net interest margin, though, worsened to 3.27 percent from 3.37 percent.

Noninterest income, which includes service charges and fees, declined 9.1 percent to $1.1 million from $1.2 million in the year-earlier quarter.

Nonperforming assets, or delinquent loans not accruing interest and foreclosed real estate, declined 6.4 percent to $5.1 million from $5.4 million.