Territorial Savings Bank’s earnings jumped 18 percent in the fourth quarter as loans grew by a double-digit percentage for the fifth year in a row.

It also became the third local bank this week to increase its dividend. The state’s fifth-largest bank said it is boosting its quarterly payout to 20 cents a share, up from 18 cents. It will be payable Feb. 23 to stockholders of record as of Feb. 9. Bank of Hawaii and First Hawaiian Bank also raised their dividends.

Territorial Bancorp Inc., the parent company, said after the market closed Thursday that net income rose to $4.4 million, or 46 cents a share, to match analysts’ estimates. A year ago, Territorial earned $3.7 million, or 40 cents a share.

“Hawaii’s strong economy has allowed us to increase the size of our loan portfolio by originating new mortgage loans, although rising interest rates may have an impact on loan volume,” Territorial Chairman and CEO Allan Kitagawa said in a statement. “The growth in our loan portfolio has increased our net income and improved our performance ratios. We also increased our deposit base.”

Territorial, which generates more than 95 percent of its loans from residential mortgages, said loans receivable jumped 12.4 percent to $1.34 billion from $1.19 billion in the year-earlier period. Deposits increased 3.3 percent to $1.49 billion from $1.45 billion. Assets rose 3.1 percent to $1.88 billion from $1.82 billion.

For the year, Territorial’s earnings increased 10.8 percent to $16.3 million, or $1.76 a share, from $14.7 million, or $1.59 a share, in 2015.

Territorial’s stock closed down 13 cents Thursday at $33.03.

The bank has been aggressively increasing dividends since going public in 2009. The latest dividend, which equates to a 2.4 percent annualized yield, marks the 29th consecutive quarterly dividend and the 12th time it has been increased from the previous quarter. In addition, the bank also has issued five special dividends outside the quarterly payouts.

Territorial said it continues to work on the renovation of its 29th branch, which will be located across the street from the Wal-Mart parking garage at 735 Keeaumoku St. in the location formerly occupied by Morning Glory, a gift shop. The bank said it has not set a date for the opening but expects it will be “soon.”

Last quarter, the bank’s net interest income, the difference between the interest Territorial pays on deposits and the interest it receives on loans, edged up 0.1 percent to $14.43 million from $14.41 million in the year-earlier quarter. Its net interest margin, though, worsened to 3.20 percent from 3.30 percent.

Noninterest income, which includes service charges and fees, declined 12.9 percent to $1.1 million from $1.2 million in the year-earlier quarter.

The bank’s nonperforming assets — delinquent loans not accruing interest and foreclosed real estate — improved as they declined 15.8 percent to $4.6 million from $5.4 million.