First Hawaiian Bank today reported an 8.8 percent increase in its fourth quarter net income, capping a year of record earnings.

The state's largest financial institution said it earned $55.9 million during the three months ending Dec. 31, 2008, up from $51.4 million in the year-earlier period.

For 2008, First Hawaiian earned a record $222.5 million, which was up 7.5 percent from 2007. The annual results represent the company's 12th consecutive year of higher earnings.

"Despite the economic challenges, the bank remains well positioned to continue to provide our customers with both solid financial solutions and security," said Don Horner, First Hawaiian's chairman and CEO.

According to the bank, revenues increased by 9.1 percent to $680.4 million while deposits grew by 3.1 percent to $9.4 billion.

A large part of the growth was due to a 20.8 percent increase in the bank's loan and lease volume. For the quarter, that sector totaled $7.9 billion, the bank said. Total assets increased by 1.8 percent to $12.8 billion.

The bank's nonperforming assets as a percentage of total assets remained one of the nation's lowest at 0.1 percent.

"Our loan growth underscores the bank's commitment to our communities we serve and is a testimony of the continued confidence we have in the future," Horner said.

Founded in 1858, First Hawaiian is a unit of BancWest Corp., which is a wholly owned subsidiary of BNP Paribas, France's largest bank by market value. First Hawaiian operates 58 branches in Hawai'i, three in Guam and two on Saipan.

Last year "marked a major milestone: the bank's 150th anniversary. Over the years, our consistent and prudent strategies have served us well," Horner said.