CORRECTED - CORRECTED-UPDATE 1-Sterling Bancshares posts Q2 loss

(Corrects reporting period in headline and text to Q2 from Q3)

* Q2 loss $0.06/common share

* Net interest income down 3.3 pct

* Provision for loan losses up 41 pct

July 21 (Reuters) - Sterling Bancshares Inc SBIB.O posted a second-quarter loss, hurt mainly by charges related to the repayment of funds to U.S. Treasury's Troubled Assets Relief Program.

Sterling Bancshares, the holding company of Sterling Bank, said net loss applicable to common shareholders was $4.9 million, or 6 cents a share, compared with net income of $10.3 million, or 14 cents a share, a year earlier.

Provision for loan losses jumped 41 percent to $11.5 million, while net interest income fell 3.3 percent to $48.6 million.

The company said it redeemed the $125 million preferred stock it sold to the U.S. Treasury in 2008, which lowered its earnings by 10 cents a share.

Analysts on average expected the company to post a loss of 1 cent a share, according to Reuters Estimates.

Shares of the company closed at $6.99 Monday on Nasdaq. (Reporting by Supantha Mukherjee in Bangalore; Editing by Anil D'Silva)