Butterfield Bank today announced a net loss of $18.6 million for the third quarter, driven by $14.2 million in provisions for loans related to hospitality projects in Bermuda and The Bahamas.

The results were also impacted by a $7.4 million loss related to the sale of businesses in Hong Kong and Malta during the quarter.

After adjusting for the payment of preference share dividends the net loss available to common shareholders for the July through September period was $23.1 million.

Butterfield CEO Brad Kopp said of the hospitality loan provisions: “Although we are not happy to be taking additional provisions, we do believe that we are positioned to see the cycle through.”

The net loss compared with net income of $7 million in the same quarter of 2009 and net income of $0.2 million for the second quarter of this year.

CFO Brad Rowse said the continued to have a strong capital base with a tier one capital ratio of 15.7 percent, well in excess of regulators’ minimum requirements.