South State Bank
Webster University

Introduction According to Mathis and Jackson, “Strategic planning is the process of defining an organizational strategy, or direction, and making decisions on allocating the resources of the organization (capital and people) to pursue this strategy” (Mathis & Jackson, 2011, p. 38). It requires a company or organization to incorporate all aspects of business into the planning process with one aim in mind: to ultimately fulfill the objectives that the company has determined to be their purpose for operating. For South State Bank, according to CEO Robert R. Hill, Jr., planning efforts are all aimed at accomplishing the goal of “[building] a high-performing bank based on a balance of soundness, profitability, and growth,” while “staying true to our values of relationship banking and commitment to our customers” (South State Bank, 2015). A large part of South State Bank’s strategic planning process includes a recent, large-scale rebranding effort in which the company expanded its local banking institutions into a larger network of banks spreading across three southern states.
Rebranding
Opening its doors in 1934, South State Bank actually began as a small, rural, community bank located in South Carolina. Originally, the company operated under the name of South Carolina Bank and Trust, more commonly known as SCBT. In 2007, the SCBT Corporation began acquiring outside banking institutions in the neighboring states of North Carolina and Georgia. These banks included The Scottish Bank (renamed NCBT), Community Bank & Trust, The Savannah Bank. The acquisitions were followed by a merge with First Financial, a company operating in Charleston, South Carolina. After initially operating as separate entities, the company saw the need for a change. In the article, “A new name in regional banking hits town next week” by Adam O’Daniel, Chief Banking Officer John Windley remarked, “Using five different brands is expensive and cumbersome” (2014). So, the decision was made to rebrand the entire operation under one name as one entity.
The rebranding included a new name and a new logo. The option of sticking with one of the original names was explored. However, the company decided that using one of the original, established brands would put limitations on the new company. “They needed a new name that didn’t look new,” said Randall Scott, Senior Vice President of Addison Whitney, the branding consulting firm hired by South State Bank to help with the rebranding process (O’Daniel, 2014). The idea was to create a name which offered customers the security of dealing with a familiar banking institution while opening them up to the possibility of new opportunities offered by the rebranded company. Thus, the name “South State Bank” was born, a name the company felt customers would hold synonymous with their former southern state (South Carolina, North Carolina, and Georgia) banking institutions.
Positive Results
With its recent strategic planning decisions and efforts, South State Bank seized an opportunity to expand on their goal of customer-oriented, relationship banking. The ultimate effect of the rebranding was the consolidation of five banking brands. One of the major benefits of this process has been improved customer service and customer satisfaction. Due to the rebranding, the bank is currently able to provide its customers with a banking network that now spans across three southern states. Customers who were once limited to a few regional brick and mortar buildings with very limited no-fee ATM access now enjoy a large network which allows them to fulfill their needs at branches located in South Carolina, North Carolina, and Georgia.
The purpose of any merger or acquisition is to create and improve shareholder value by combining two or more existing companies in order to form one “competitive, cost-efficient company” (Mathis & Jackson, 2011, p. 50). Though the rewards can be plentiful, the risks can be just as abundant. Mathis and Jackson explain that
Research has clearly shown that the majority of [mergers and acquisitions] fail to deliver on the expected financial, marketing, or product gains, with only about one-third of companies reporting that they achieved their goals. A significant number of failed ventures can trace their roots to [human resources] issues that were not properly addressed such as loss of key staff, culture clashes, and poor communication. (2011, p. 50)
South State Bank took a huge risk with their recent rebranding efforts, one that research shows could have ended in great failure. However, South State Bank has shown, thus far, that they are in the minority regarding this statistic. Reports released by the company January 27, 2015, showed that the company is, in fact, making moves in a positive direction. According to the Business Wire article, “South State Corporation Reports Increase in 2014 Net Income of 55.4%; Increases Quarterly Cash Dividend,” the company reports the following highlights: * 55.4% improvement to $74.4 million on net income available to common shareholders * 21.0% growth to $602.6 million in non-acquired loan growth * Increased performance ratios, including 18% growth on return on average assets and improved efficiency ratios * Strengthened balance sheet with a net loan growth of $28.4 million * Improved asset quality, including a decline in net charge offs on non-acquired loans and a decline in nonperforming assets (2015)
CEO Robert R. Hill, Jr. regards the year as a “transformational” one. He comments, “During the year much changed, but our continued focus on our customers allowed us to attract new customer relationships while retaining and enhancing existing relationships (South State Corporation Reports Increase, 2015). With its strong customer relationships as the foundation for the original company’s success, First State Bank knew that in order to be successful in the rebranding of the organization, they would have to plan in a way that was in keeping with the brand that the customers had come to love while offering them an additionally new type of service that would allow them to see the benefit of the rebranding.
Conclusion
South State Bank prides itself on being a customer-centered company. The organization’s site states, “Everything we do is backed by the philosophy of service and a commitment to supporting the communities we call home” (South State Bank, 2015). This is apparent in the recent actions they have taken to expand the company. Though any expansion is clearly largely about the bottom line financially, the company understands that its “bottom line” is directly affected by the customers and communities that it serves. Thus, the expansion was made with the goal of expanding profits as well as expanding customer offerings. As a company that emphasizes values such as integrity, trust, relationship, and service, South State Bank has made steps to expand their organization in a way that holds true to these values, while still improving upon the organization. Through its strategic planning efforts, South State Bank is a shining example of how strategic planning, when done properly, can ultimately help any organization attain its goals.

References
Mathis, R. L., & Jackson, J. H. (2011). Human resource management (13th ed.). Mason, OH: Cengage.
O’Daniel, A. (2014, June 27). A new name in regional banking hits town next week. Charlotte Business Journal. Retrieved from http://www.bizjournals.com/charlotte/print-edition/2014/06/27/a-new-name-in-regional-banking-hits-town-next-week.html?page=all
South State Bank. (2015). Retrieved from https://www.southstatebank.com
South State Corporation reports increase in 2014 net income of 55.4%; Increases quarterly cash dividend. (2015, January 27). Businesswire.com. Retrieved from http://www.businesswire.com/news/home/20150127005229/en/South-State-Corporation-Reports-Increase-2014-Net#.VNJUTy6jaQk