Janney Montgomery Scott Initiates Coverage on Beneficial Mutual Bancorp (BNCL) with a Neutral

December 4, 2008 9:24 AM EST

Janney Montgomery Scott initiates coverage on Beneficial Mutual Bancorp (Nasdaq: BNCL) with a Neutral.

Janney analyst says, "Based in Philadelphia, where the major banks are headquartered in remote cities and run by executives who don’t know the difference between a cheesesteak and stromboli, Beneficial is a homegrown institution positioned to benefit from its local roots. Beneficial, Philly’s largest and oldest banking institution, has been rejuvenated as evidenced by its conversion from a lethargic mutual institution to a publiclyowned mutual holding company and simultaneous acquisition of FMS Financial in 2007; and the appointment of a new chief executive officer from outside the bank that same year. That said, Beneficial appears more likely to build shareholder value over time rather than undertake a second step conversion and become a 100% publicly owned stock institution over the next year or two. We favor mutual holding companies in tough times given their ability to more effectively manage capital through controlled growth, which includes judicious stock repurchases."

Beneficial Mutual Bancorp, Inc. is a savings and loan holding company.

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