Updated from 1:07 p.m. EST

PNC Financial Services

(PNC) - Get Report

shares fell almost 18% Tuesday after it announced a fourth-quarter loss on acquisition charges and said it would cut 5,800 jobs over the next several years.

Pittsburgh-based

PNC

, which on Jan. 21 warned it would post a loss related to its acquisition of

National City

, lost $248 million, or 77 cents a share, down from net income of $178 million, or 52 cents a share, a year ago.

PNC did not include National City's results in its fourth-quarter statement. It said the primary impact on the quarter was a loan-loss provision of $504 million and other integration costs.

Excluding costs related to acquisitions, the company said it made $132 million, or 32 cents a share in the fourth quarter, vs. $228 million, or 67 cents a share, a year ago. Analysts surveyed by Thomson Reuters, who typically exclude special charges, were on average expecting fourth-quarter profit of 75 cents a share.

For the full year, PNC made $882 million, or $2.46 a share, compared with $1.47 billion, or $4.35 a share in 2007. The Street was expecting 2008 profit of $4.04 a share.

The company also said that, following its purchase of National City, it would cut 5,800 jobs, or about 10% of the combined work force, by 2011.

PNC's balance sheet as of Dec. 31, which reflects the

National City

acquisition, included total assets of $291 billion, loans of $175 billion and deposits of $193 billion. It estimated its tier-1 capital ratio at 9.7%, vs. 6.8% a year ago. PNC received $7.6 billion in Treasury bailout money under the Troubled Asset Relief Program on Dec. 31.

Estimated tangible common equity ratio was at 2.8% at Dec. 31. The company said the ratio would have been at 4.1% if accumulated other comprehensive losses were excluded.

Average loans for the fourth quarter rose 12% year over year and 3% from the third quarter. PNC estimated it originated $9 billion in new loans and commitments.

As of Dec. 31, investment securities stood at $43.5 billion, or 15% of total assets. PNC said 53% of its securities portfolio contained of high quality agency-issued residential mortgage-backed securities. Eighty percent of the remainder of the portfolio contained triple-A related securities.

PNC reported a 25% increase in net interest income year over year to $992 million for the fourth quarter. From the third quarter, net interest income declined 1%. Noninterest income declined to $684 million from $834 million a year ago. The company attributed the decline to "unprecedented market conditions."

Industry consolidation has hurt earnings of many financial-services companies.

Bank of America

(BAC) - Get Report

was hit hard earlier this year by the announcement of $15.31 billion in losses by

Merrill Lynch

, which it bought on Jan. 1.

JPMorgan Chase

(JPM) - Get Report

, which bought

Washington Mutual

last year, reported a 76% decline in profit for the fourth quarter.

PNC said it would maintain its dividend and that earnings would contribute to improved capital ratios going forward. The company also said the dividend would be subject to quarterly review by its board of directors. On Jan. 8, PNC declared a 66-cent quarterly dividend on its common stock, payable Jan. 24 to shareholders of record as of Jan. 16.

Shares of PNC, which fell as far as $26.50 Tuesday, closed down 7.2% to $29.85.