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)      August 17, 2007

SOUTHCREST FINANCIAL GROUP, INC.

 (Exact Name of Registrant as Specified in its Charter)

Georgia	000-51287	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   (770) 461-2781

 (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 quarter and six months ended June 30, 2007.

Item 9.01.  Financial Statements and Exhibits.

99.1       Press release dated August 17, 2007.  (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:	August 23, 2007	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 August 17, 2007

EX-99.1

Exhibit 99.1

SouthCrest Financial Group, Inc. Announces Second Quarter Earnings

FAYETTEVILLE, GA, (August 17,  2007) – SouthCrest Financial Group, Inc. (SCSG) reported net income for the quarter ended June 30, 2007 of $1,599,000 or $0.40 per share, compared to $1,426,000 or $0.40 per share for the same quarter a year ago.  For the six month period ended June 30, 2007, net income was $3,204,000, or $0.81 per share compared to $2,832,000, or $0.79 per share for the same period a year ago.  All per share amounts are stated on a basic and fully diluted basis.

Net income for the three and six months end June 30, 2006 do not include results of operations for Peachtree Bank, as it became a subsidiary of SouthCrest as a result of the October 31, 2006 merger with Maplesville Bancorp and its results of operation are only included prospectively from the date of merger.

Return on average assets was 1.20% for the three months ended June 30, 2007 compared to 1.26% for the same period in 2006, and 1.20% for the current year to date period compared to 1.27% for the same period in 2006.  Return on average equity was 9.28% for the three months ended June 30, 2007 compared to 10.45% for the same period in 2006, and 9.44% for the six months ended June 30, 2007 compared to 10.51% for the same period in the prior year.  The Company’s net interest margins have improved over the previous year, increasing from 4.45% to 4.57% for the three months ended June 30, 2007, and from 4.48% to 4.55% for the six months ended June 30, 2007.

Nonperforming assets decreased to $1,048,000 from $1,700,000 at December 31, 2006.  The Company’s asset quality indicators compare favorably with historical benchmarks for the industry.  At June 30, 2007, nonperforming assets were 0.20% of total assets compared to 0.31% of total assets at December 31, 2006.  For the six months ended June 30, 2007, the Company experienced net chargeoffs of 0.02% versus net recoveries of 0.03% for the same period in 2006.  At June 30, 2007, the allowance for loan losses was 1.39 % of loans compared to 1.34% at December 31, 2006.

Total assets at June 30, 2007 were $531.5 million compared to $544.0 million at December 31, 2006, a decrease of $12.5 million.  Loans increased $1.0 million or 0.3% to $336.5 million.  In the first six months of 2007, the Company’s loan growth has slowed compared to levels experienced in 2006 and 2005.  Deposits declined $15.6 million or 3.4% to $447.0 million due primarily to reductions in accounts of local governments.

In a press release dated July 2, 2007, the Company announced that on July 1, 2007 it had completed its merger with Bank of Chickamauga.  Bank of Chickamauga maintains two offices in the City of Chickamauga in Walker County, Georgia.  At June 30, 2007 it had approximately $67.2 million in assets, $49.8 million in deposits, and capital of $13.8 million.

The Company also announced on July 2, 2007 that it declared a dividend of $0.13 per share compared to $0.125 per share for the same period a year ago.  The dividend was paid on July 31, 2007 to shareholders of record as of July 17, 2007.

About SouthCrest Financial Group, Inc.

SouthCrest Financial Group, Inc. is the parent company of four bank subsidiaries operating a total of thirteen branch offices.  Bank of Upson, based in Thomaston, GA, 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.  The First National Bank of Polk County, based in Cedartown, GA, operates three branches in Polk County, while Peachtree Bank, based in Maplesville, AL, operates two branches in Chilton County, Alabama.  On July 1, 2007, SouthCrest completed its acquisition of Bank of Chickamauga, located in Chickamauga, Georgia, which operates two branches in Walker County, Georgia.  SouthCrest is traded on the OTC-Bulletin Board under the symbol “SCSG.”

Forward-Looking Statements

This release contains forward-looking statements including statements relating to present or future trends or factors generally affecting the banking industry and specifically affecting SouthCrest’s operations, markets and products. Without limiting the foregoing, the words "believes," "anticipates," "intends," "expects," or similar expressions are intended to identify forward-looking statements. These forward-looking statements involve risks and uncertainties. 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 SouthCrest’s control. These trends and events include (i) changes in the interest rate environment which may reduce margins, (ii) not achieving expected growth, (iii) less favorable than anticipated changes in the national and local business environment and securities markets, (iv) adverse changes in the regulatory requirements affecting SouthCrest, (v) greater competitive pressures among financial institutions in SouthCrest’s markets and (vi) greater loan losses than historic levels.  Additional information and other factors that could affect future financial results are included in SouthCrest’s filings with the Securities and Exchange Commission.

###

Contact Information:

SouthCrest Financial Group, Inc.

Doug Hertha, CFO

770-461-2781

SouthCrest Financial Group, Inc.
Consolidated Financial Highlights
(Unaudited)
	Quarter Ended June 30									Year Ended June 30
	2007			2006			% Change			2007			2006			% Change
All dollars in thousands except per share data
EARNINGS
Net interest income	$	5,467		$	4,624			18.2	%	$	10,835		$	9,205			17.7	%
Provision for loan losses		77			133			-42.1	%		226			241			-6.2	%
Noninterest income		1,597			1,335			19.6	%		3,052			2,565			19.0	%
Noninterest expense		4,660			3,709			25.6	%		8,993			7,316			22.9	%
Income taxes		728			691			5.4	%		1,464			1,381			6.0	%
Net income		1,599			1,426			12.1	%		3,204			2,832			13.1	%
PER SHARE INFORMATION
Earnings per share	$	0.40		$	0.40			0.0	%	$	0.81		$	0.79			2.5	%
Dividends per share		0.130			0.125			4.0	%		0.260			0.250			4.0	%
Book value per share		17.65			15.43			14.4	%
Shares outstanding		3,952,328			3,581,193
OPERATING RATIOS (1)
Net interest margin		4.57	%		4.45	%					4.55	%		4.48	%
Return on average assets		1.20	%		1.26	%					1.20	%		1.27	%
Return on average equity		9.28	%		10.45	%					9.44	%		10.51	%
Efficiency ratio		65.97	%		62.24	%					64.76	%		62.16	%
Net chargeoffs / average loans		0.08	%		0.00	%					0.02	%		-0.03	%
AVERAGE BALANCES
Loans	$	333,674		$	282,696			18.0	%	$	333,302		$	279,406			19.3	%
Total earning assets		479,376			417,095			14.9	%		480,338			414,491			15.9	%
Total assets		536,068			454,373			18.0	%		537,271			451,403			19.0	%
Deposits		452,210			385,893			17.2	%		453,805			381,008			19.1	%
Borrowed funds		6,457			11,137			-42.0	%		6,620			13,175			-49.8	%
Shareholders' equity		69,081			54,719			26.2	%		68,464			54,343			26.0	%
										As of
	As of June 30,									Dec. 31
END OF PERIOD BALANCES	2007			2006			% Change			2006			% Change
Loans	$	336,450		$	287,536			17.0	%	$	335,452			0.3	%
Reserve for loan losses		4,674			3,759			24.3	%		4,480			4.3	%
Total earning assets		471,699			415,783			13.4	%		483,653			-2.5	%
Intangible assets		13,109			6,503			101.6	%		13,550			-3.3	%
Total assets		531,470			461,219			15.2	%		544,017			-2.3	%
Deposits		447,023			389,176			14.9	%		462,622			-3.4	%
Borrowed funds		6,394			11,815			-45.9	%		5,945			7.6	%
Shareholders' equity		69,759			55,253			26.3	%		67,555			3.3	%
ASSET QUALITY (END OF PERIOD)
Loans 90 days past due and still accruing	$	368		$	469					$	1,015
Nonaccrual Loans		178			1,032						479
Other Real Estate Owned		502			25						206
Total nonperforming assets		1,048			1,526						1,700
Nonperforming assets / total assets		0.20	%		0.33	%					0.31	%
Allowance for loan losses / total loans		1.39	%		1.31	%					1.34	%
______________________________
(1)  All ratios are annualized.
n/m - percentage change is not meaningful.