CORRECT: Marshall & Ilsley 2Q Loss Narrows; Shares Slide

("Marshall & Illsley 2Q Loss Narrows; Shares Slide As Views Missed," published at 8:59 a.m. EDT, misspelled the company's name. A corrected version follows.)

Marshall & Ilsley Corp.'s (MI) second-quarter loss narrowed as the company said credit quality was improving and its loan-loss provisions declined.

But results missed analysts' estimates, sending shares tumbling 9.1% to $7.01 premarket. As of Monday's close, the stock had risen 77% in the past year.

"Loan-loss provision and net charge-offs were consistent with the first quarter and substantially better than last year," said President and Chief Executive Mark Furlong. "This continues the progress we have made in addressing asset quality challenges through our early identification of problem credits"

The Wisconsin-based regional bank has continued to struggle, now posting seven straight quarters in the red, although results have improved along with other banks. Marshall & Ilsley's loan-loss provisions have fallen, though not as steeply as some others'.

Marshall & Ilsley reported a loss of $173.8 million, or 33 cents a share, from a year-earlier loss of $234 million, or 83 cents. The year-earlier quarter included a net 8 cents of gains. Revenue dropped 12% to $581.3 million.

Analysts polled by Thomson Reuters had most recently forecast a loss of 26 cents on $592 million in revenue.

Loan-loss provisions were $439.9 million, down from $619 million a year earlier and $458.1 million in the prior quarter. Net charge-offs, or loans lenders don't think are collectible, fell to 4.17% of average loans from 4.95% a year earlier but rose from 3.94% in the prior quarter. Nonperforming loans, those near default, dropped to 4.36% from 5.01% and 4.58%, respectively.

The bank's average loans and leases decreased 14% from a year earlier as deposits rose 3%.

-By Nathan Becker, Dow Jones Newswires; 212-416-2855; [e-mail]