This New Year's we're toasting banks that say "no thanks" to a bailout.

Yes, it turns out that at least a few banks in America still have some dignity left. More importantly, they have capital. Unlike their hat-in-hand peers, these banks say they're doing just fine on their own and won't be needing taxpayer dollars to get through the credit crisis.

Even more impressive, two of the eight banks on the list actually increased their earnings through the first nine months of 2008. Hudson City Bancorp (HCBK), of Paramus, N.J., grew its net profit a whopping 47% to $321 million through the third quarter. And Honolulu-based Bank of Hawaii (BOH) increased net profit 7% to $153 million.

"The common denominator for all of these guys is they have held up really well. Their fundamentals have done much better than the average in the industry," says Morningstar analyst Jaime Peters, who has been following the issue.

As part of its Wall Street bailout, the Treasury Department offered to spend up to $250 billion on capitalizing financial institutions. Companies had until mid-November to apply for the help.

One irony is that Wall Street giants like Citigroup (C), which once had a market cap of more than $100 billion, really needed the government handout amid the credit crisis. Yet some small regional players such as Prosperity Bancshares (PRSP) and Cullen/Frost Bankers (CFR), both located in Texas, have enough capital that they're willing to turn down Uncle Sam's offer.

Banks Worth Banking On

As the list below shows, these banks are a diverse lot, representing both coasts, the Deep South, Southwest and Midwest. Prosperity Bancshares credits its Texas locale as "an advantage," since Texas' economy has done better than the rest of the country's. Hudson City Bancorp, meanwhile, focuses on writing big-ticket mortgages in wealthy East Coast markets.

What each of these banks has in common is "highly conservative" underwriting records, Peters says. You'll also note their Tier 1 Capital ratios, a measure of how well-capitalized a bank is. Each of these banks has ratios above 9%; the minimum ratio to be considered well-capitalized is 6%, Peters says.

Keep in mind that just because these banks have done better than others so far doesn't make them immune to recession. Some are already showing a few strains. So do your homework before buying. Also, their shares aren't exactly screaming cheap just now. Seven of the eight have price/earning ratios richer than that of the Financial Select Sector SPDR (XLF), an ETF that tracks the financial companies in the S&P 500 index. That may be a sign we're not the only ones saying "cheers" to these banks' rejection of bailout funding.