8-K

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported) January 26, 2005

SouthCrest Financial Group, Inc.

(Exact Name of Registrant as Specified in its Charter)

Georgia	333-112845	58-2256460
(State or Other Jurisdiction of Incorporation)	(Commission File Number)	(IRS Employer Identification No.)

600 North Glynn Street, Suite B, Fayetteville, GA	30214
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code (706) 647-5426

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

     o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

     o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

     o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

     o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operation and Financial Condition.

     The purpose of this Current Report on Form 8-K is to file SouthCrest Financial Group, Inc.’s earnings release for the year and quarter ended December 31, 2004.

Item 9.01. Financial Statements and Exhibits.

     99.1 Press release dated January 26, 2005. (Furnished, but not “filed” for purposes of liability under Section 18 of the Securities Exchange Act of 1934, as amended.)

SIGNATURES

     Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized.

	SOUTHCREST FINANCIAL GROUP, INC.
Dated: January 27, 2005	By:	/s/ Douglas J. Hertha
		Douglas J. Hertha
		Senior Vice President, Chief Financial Officer

EXHIBIT INDEX

Exhibit No.	Description of Exhibit
99.1	Press Release dated January 26, 2005

EX-99.1

Exhibit 99.1

SouthCrest Financial Group, Inc. Announces Earnings

FAYETTEVILLE, GA, (January 26, 2005) — SouthCrest Financial Group, Inc. (SCSG) reported net income of $3,857,000 or $1.52 per share for the year ended December 31, 2004 compared to $3,335,000 or $1.53 per share for 2003. For the fourth quarter of 2004, net income was $1,172,000 or $0.32 compared to $766,000 or $0.35 for the same period last year. Most of the increase in net income for both the year and quarter was the result of the Company’s merger with First Polk Bankshares, Inc. on September 30, 2004. Assets and liabilities and results of operations for First Polk are only included in the balance sheets and income statements of the Company from the date of merger going forward.

Total assets at December 31, 2004 were $407.7 million compared to $256.2 million at December 31, 2003, with the increase attributable to the merger with First Polk. At December 31, 2004 gross loans (excluding reserves for loan losses) totaled $229.9 million compared to $123.7 million at December 31, 2003, while deposits were $352.3 million at December 31, 2004 compared to $227.5 million at December 31, 2003. At December 31, 2004, the allowance for loan losses was 1.37% of loans compared to 1.48% of loans at December 31, 2003. Net chargeoffs were 0.19% and 0.20% of average loans for the years ended December 31, 2004 and 2003, respectively. At December 31, 2004, nonperforming assets were $372,000, or 0.09% of total assets, compared to $217,000, or 0.08% of total assets at December 31, 2003.

“We are pleased with the successful completion of the merger of the two bank holding companies and the profits earned by SouthCrest in this first year of combining our holding companies,” said Larry Kuglar, President and CEO.

Danny Brinks, Chairman and COO, added, “The integration of the two merged bank families is going smoothly, with both bank subsidiaries continuing to operate as independent community banks as we seek to realize savings by integrating some behind-the-scenes functions. We remain excited about our combined holding company, and look for positive results as we work towards continued growth and profitability.”

In a press release dated January 3, 2005, the Company announced that it declared a dividend of $0.12 per share compared to $0.115 per share for the previous quarter. The dividend will be paid on January 31, 2005 to shareholders of record as of January 17, 2005.

SouthCrest Financial Group, Inc. is the parent company of two bank subsidiaries operating a total of nine branch offices. Bank of Upson, based in Thomaston, Georgia, has two branches in Upson County, three branches in Meriwether County operating as Meriwether Bank & Trust, and one branch in Fayette County operating as SouthCrest Bank. First National Bank of Polk County, based in Cedartown, Georgia, operates three branches in Polk County.

Forward-Looking Statements

This press release contains “forward-looking statements” as defined by federal securities laws. These statements may address issues that involve significant risks, uncertainties, estimates and assumptions made by management. Actual results could differ materially from those projected for many reasons, including, without limitation, changing events and trends that have influenced SouthCrest’s assumptions, but that are beyond its control. These trends and events include: (i) changes in the interest rate environment that may reduce margins, (ii) not achieving expected growth, (iii) difficulties in integrating the operations of First Polk and Upson after the merger; (iv) less favorable than anticipated changes in the national and local business environments and securities markets, (v) adverse changes in the regulatory requirements affecting SouthCrest, (vi) greater competitive pressures among financial institutions in

SouthCrest’s markets and (vii) greater loan losses than historic levels.. Please refer to SouthCrest’s filings with the Securities and Exchange Commission for a summary of important factors that could affect SouthCrest’s forward-looking statements. SouthCrest undertakes no obligation to revise these statements following the date of this press release.

For more information, contact Larry Kuglar, President and Chief Executive Officer, at 678-721-5205, Doug Hertha, Chief Financial Officer at 770-461-2781, or Danny Brinks, Chairman and Chief Operating Officer, at 706-647-5426.

SouthCrest Financial Group, Inc.
Consolidated Financial Highlights
(Unaudited)

	Quarter Ended December 31									Year Ended December 31
	2004			2003			% Change			2004			2003			% Change
All dollars in thousands except per share data
EARNINGS
Net interest income	$	4,408		$	2,072			112.7	%	$	12,033		$	9,130			31.8	%
Provision for loan losses		85			81			4.9	%		375			324			15.7	%
Noninterest income		1,062			1,188			-10.6	%		3,357			3,512			-4.4	%
Noninterest expense		3,724			2,091			78.1	%		9,498			7,593			25.1	%
Income taxes		489			322			51.9	%		1,660			1,390			19.4	%
Net income		1,172			766			53.0	%		3,857			3,335			15.7	%
PER SHARE INFORMATION
Earnings per share	$	0.32		$	0.35			-8.6	%	$	1.52		$	1.53			-0.7	%
Dividends per share		0.115			0.115			0.0	%		0.460			0.460			0.0	%
Book value per share		14.21			11.94			19.0	%		14.21			11.94			19.0	%
Tangible book value per share		11.73			10.31			13.8	%		11.73			10.31			13.8	%
OPERATING RATIOS (1)
Net interest margin		4.67	%		3.52	%					4.46	%		3.95	%
Return on average assets		1.13	%		1.20	%					1.32	%		1.33	%
Return on average equity		9.04	%		11.83	%					11.67	%		13.15	%
Efficiency ratio		68.08	%		64.14	%					61.72	%		60.06	%
Net chargeoffs / average loans		0.22	%		-0.39	%					0.19	%		0.20	%
AVERAGE BALANCES
Loans	$	231,480		$	124,550			85.9	%	$	156,003		$	119,676			30.4	%
Total earning assets		375,769			233,679			60.8	%		269,649			231,131			16.7	%
Total assets		411,851			254,052			62.1	%		292,446			251,687			16.2	%
Deposits		329,427			224,789			46.5	%		256,035			222,463			15.1	%
Shareholders’ equity		51,571			25,694			100.7	%		33,039			25,356			30.3	%
END OF PERIOD BALANCES
Loans	$	229,907		$	123,664			85.9	%
Reserve for loan losses		3,161			1,825			73.2	%
Total earning assets		374,684			237,238			57.9	%
Intangible assets		8,852			3,573			147.7	%
Total assets		407,672			256,205			59.1	%
Deposits		352,252			227,469			54.9	%
Shareholders’ equity		50,740			26,045			94.8	%
ASSET QUALITY (END OF PERIOD)
Loans 90 days past due and still accruing	$	186		$	97
Nonaccrual Loans		—			—
Other Real Estate Owned		186			120
Total nonperforming assets		372			217
Allowance for loan losses / total loans		1.37	%		1.48	%
Nonperforming assets / total assets		0.09	%		0.08	%

(1)   All ratios are annualized.