(Update includes corrected Citadel exchange offer, Thursday share prices.)E*Trade Financial ( ETFC) shares were rising modestly Thursday, a day after the troubled online brokerage beat analysts' estimates and showed improvement from the first quarter, but still fared worse than it did the same time last year. The New York company reported a loss of $143 million, or 22 cents a share. That's slightly better than its first-quarter results in which it posted a loss of $233 million, or 41 cents a share, but worse than the year-earlier quarter in which E*Trade had a loss of $95 million, or 19 cents a share. Net revenue totaled $621 million. Analysts on average expected the company to record a loss of 31 cents a share. The stock recently was rising 4 cents, or 2.9%, to $1.40. The company said its bank subsidiary had a Tier 1 capital level of 6.79% to total adjusted assets and 12.65% to risk-weighted assets. "This quarter marked several important milestones for the company," Chairman and CEO Don Layton said in a release. "Our core franchise generated excellent volumes and profit, our credit provision continued to moderate quarter over quarter, and we completed most of the key components of a major recapitalization of the company." The brokerage firm has been on shaky ground this year. E*Trade, in conjunction with its first-quarter earnings release in April, said that in light of the continuing losses in E*Trade Bank's roughly $22 billion loan portfolio, the Office of Thrift Supervision, its primary banking regulator, told the company to raise capital quickly. The company put in place a capital restructuring plan that included raising common equity from the public markets and is currently undergoing debt exchange program. Analysts had speculated this spring that parts or all of the company could be sold. E*Trade plans to hold a special shareholder meeting on Aug. 19 to seek approval for the exchange.