Territorial Bancorp Inc.’s earnings rose 7.3 percent in the first quarter as loans surged amid continued strength in the state’s real estate market.

The parent of the state’s fifth-largest bank reported today that net income increased to $3.8 million, or 41 cents a share, to beat analysts’ estimates by a penny. In the year-earlier quarter, Territorial had earnings of $3.5 million, or 38 cents a share.

Territorial Savings Bank, which generates more than 95 percent of its loans from residential mortgages, produced a 16.9 percent increase in loans to $1.21 billion from $1.04 billion in the year-earlier quarter.

The company also said it has received approval from the Federal Reserve Bank of San Francisco to open its 29th branch, which will be located across the street from the Walmart parking garage on Keeaumoku Street. The new branch at 735 Keeaumoku St. will be in the location formerly occupied by Morning Glory, close to Like Like Drive Inn. Territorial said it is still waiting approval from the state to open the branch.

Territorial maintained its quarterly dividend at 18 cents a share. It will be payable May 26 to stockholders of record as of May 12.

The company’s stock rose 2 cents today to $26.12. Territorial released its financial results after the stock market closed.