Territorial Savings Bank’s parent company increased its dividend for the sixth time in less than three years as continued strong loan growth boosted earnings 3.2 percent.

The state’s fifth-largest bank, which generates more than 95 percent of its loans from residential mortgages, posted net income Thursday of $3.8 million, or 41 cents a share, compared with $3.7 million, or 40 cents a share, in the year-earlier quarter.

Territorial Bancorp Inc. raised its dividend by a penny to 17 cents a share. It will be payable Aug. 27 to stockholders of record as of Aug. 13. The dividend represents the bank’s 22nd consecutive quarterly dividend payment. At Thursday’s closing price of $24.61, the payout will equate to an annualized yield of 2.97 percent.

“Our loan portfolio grew by 14.7 percent during the first six months of 2015, while net interest income rose by 4.9 percent for the first six months of 2015 as compared to the first six months of 2014,” Territorial Chairman and CEO Allan Kitawaga said. “Our strong performance has allowed us to increase our dividend.”

For the quarter, loans jumped 23 percent to $1.11 billion from $902,991, deposits rose 4.2 percent to $1.37 billion from $1.32 billion and assets grew 5.8 percent to $1.74 billion from $1.65 billion.

Net interest income, the spread between loan and deposit rates, rose 5.6 percent to $13.96 million from $13.21 million.

Noninterest income, which includes service charges and fees, slipped 2.4 percent to $1.25 million from $1.28 million primarily due to a $69,000 decrease in what the bank generated from the sale of investment securities compared with the year-earlier period.

The earnings were announced after the market closed.