Butterfield Bank made a loss of $207.6 million for 2010, the bank announced this afternoon, compared to a loss of $213.4 million in 2009.In a statement, the bank said its loss was driven primarily by non-recurring losses associated with selling off some of the troubled assets which have caused Butterfield huge losses over the past three years.These included realised losses of $113.8 million on the sale of asset-backed securities in the first quarter, the recording of other-than-temporary impairments of $60.5 million in the first quarter on structured investment vehicles, net provisions of $31.8 million taken primarily in respect of large hospitality-related corporate loans, and restructuring costs of $12.4 million.The bank said non-accrual loans - loans on which interest is overdue and repayment is considered uncertain - totalled $160 million, down from more than $230 million a year earlier, and equivalent to 3.9 percent of the total loan portfolio.“Subsequent to year end, we settled a troubled hospitality loan, further reducing our non-accrual loans to 3.75 percent of total loans, compared to 5.37 percent a year earlier,” the bank stated. “We continue to work with our borrowers to find mutually agreeable repayment solutions.”The bank has taken action to place two hotel properties in Bermuda in receivership.“This was deemed that to be the best course of action to protect the value of the assets and safeguard the interests of Butterfield shareholders,” the bank stated. “The properties continue to operate under professional management overseen by the receivers, with a view to selling them as going concerns.”Brad Kopp, Butterfield’s president and chief executive officer, said: “2010 was a year of building a strong foundation amongst challenging economics, starting with the successful capital raise bringing in new investors and an over-subscribed rights offering to our historical investor base.“The resultant strong capital base and good liquidity position allowed us to finalise the process of ridding the balance sheet of problematic assets and putting realisable values on remaining assets. This leaves us with a strong capital base to withstand continued uncertainty in the global economic outlook and to support growth as our economies recover.”