REFILE-UPDATE 1-Marshall & Ilsley reports net loss

(fixes typo in headline)

* Reports net loss of 50 cents per share

* Company says tackled credit issues with writedowns in Q2

* Shares slip in pre-market trade

By Steve Eder

NEW YORK, July 17 (Reuters) - Marshall & Ilsley Corp MI.N, Wisconsin's largest bank, said on Friday its losses shrunk in the second-quarter as the company aggressively took on credit concerns with writedowns.

Net losses for the Milwaukee-based company fell to $139.3 million, or 50 cents per share, from a loss of $383.8 million, or $1.52 a share, a year earlier.

Marshall & Ilsley announced a loan loss provision of $468 million, $15 million in excess of net charge-offs, which included consumer real estate loans.

Marshall & Ilsley has taken $1.72 billion from the government's $700 billion Troubled Asset Relief Program.

Marshall & Ilsley shares closed Thursday at $5.29 on the New York Stock Exchange. The shares have declined 60 percent this year, compared with a 14 percent decline in the KBW Bank Index .BKX.

Marshall & Ilsley said net interest, or lending, income fell 12 percent from a year earlier to $398.5 million. Non-interest income rose 42 percent to $267.2 million.

Marshall & Ilsley said financial results included after-tax special FDIC insurance assessment of $18 million, or $0.07 per share.

Marshall & Ilsley set aside $187.2 million for compensation, an increase of 0.4 percent from the same period last year.

Loans decreased 2 percent to $48.9 billion and deposits rose 0.2 percent to $39.9 billion.

The company said a stock offering in June raised

The company said it raised $552 million in a common stock offering. It earlier said the proceeds might be used to repurchase preferred stock issued to the U.S. Treasury through the TARP program.

In the first quarter, Marshall & Ilsley posted a loss when it was hurt by an increase in soured loans to residential developers.

In January, the bank slashed its quarterly dividend, ending 36 years of increases.

Shares in the company slipped slightly in pre-market trading.

(Reporting by Steve Eder, editing by Matt Daily)