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) February 13, 2008

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 EmployerIdentification 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 twelve months ended December 31, 2007.

Item 9.01.  Financial Statements and Exhibits.

99.1           Press release dated February 13, 2008.  (Furnished, but not “filed” for purposes of liability under Section 18of 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: February 15, 2008	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 February 13, 2008

EX-99.1

Exhibit 99.1

SouthCrest Financial Group, Inc. Announces Fourth Quarter Earnings

FAYETTEVILLE, GA, (February 13, 2008) – SouthCrest Financial Group, Inc. (SCSG) reported net income of $1,446,000 for the quarter ended December 31, 2007 compared to $1,493,000 for the same quarter a year ago.  For the year ended December 31, 2007, net income was $6,300,000 compared to $5,774,000 for the same period in 2006.  On a per share basis, results were $0.37 per share for the current quarter compared to $0.39 for the same period a year ago, and $1.60 per share for the year ended December 31, 2007 compared to $1.58 for the year ended December 31, 2006.  All per share amounts are stated on a basic and fully diluted basis.

Results of operations for 2006 and 2007 include the net income of Peachtree Bank and Bank of Chickamauga prospectively from their acquisition dates, which was October 31, 2006 for Peachtree Bank and July 1, 2007 for Bank of Chickamauga.

Return on average assets was 0.93% for the current quarter compared to 1.12% for the same period in 2006, and 1.11% for the current year compared to 1.22% for 2006.  Return on average equity was 8.05% for the quarter compared to 9.24% in 2006, and 9.04% and 10.05% for the annual periods in 2007 and 2006, respectively.   For the year, the Company’s net interest margin has remained consistent with the previous year, increasing to 4.47% for 2007 from 4.46% for 2006.  For the quarter, the net interest margin declined from 4.42% for 2006 to 4.23% for 2007.  The primary reason for the decline relates to reductions in earning assets resulting from the acquisition of Bank of Chickamauga on July 1, 2007 as it was an all cash acquisition.

Total assets at December 31, 2007 were $606.0 million compared to $544.0 million at December 31, 2006, an increase of $62.0 million due primarily to the acquisition of Bank of Chickamauga.  Loans increased $38.6 million or 11.5% to $374.1 million, while deposits increased $51.3 million or 11.1% to $513.9 million.  Changes in loans and deposits are primarily due to the acquisition of Bank of Chickamauga.  Excluding the impact of the acquisition, loans would have grown $11.9 million and deposits would have increased by $1.6 million.  In 2007, the Company’s loan growth has slowed compared to levels experienced in 2006 and 2005.

At December 31, 2007, the allowance for loan losses was 1.32% of loans compared to 1.34% at December 31, 2006.  Net chargeoffs were 0.15% and 0.16% of average loans for the years ended December 31, 2007 and 2006, respectively.  For the three month periods, net chargeoffs were 0.40% and 0.37% of average loans for 2007 and 2006, respectively.  Despite an increase in nonperforming assets at December 31, 2007, the Company’s asset quality indicators compare favorably with historical benchmarks for the industry.  At December 31, 2007, nonperforming assets were $2,077,000, or 0.34% of total assets, compared to $1,700,000 or 0.31% of total assets at December 31, 2006.

In a press release dated January 4, 2008, the Company announced that it declared a dividend of $0.13 per share.  The dividend was paid on January 31, 2008 to shareholders of record as of January 17, 2008.

About SouthCrest Financial Group, Inc.

SouthCrest Financial Group, Inc. is the parent company of four bank subsidiaries operating a total of fourteen 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 two branches in Fayette County operating as SouthCrest Bank;  The First National Bank of Polk County, based in Cedartown, GA, operates three branches in Polk County; Peachtree Bank, based in Maplesville, AL, operates two branches in Chilton County, Alabama; and 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.

                                                                           # # #

SouthCrest Financial Group, Inc.
Consolidated Financial Highlights
(Unaudited)
	Quarter Ended December 31									Year Ended December 31
	2007			2006			% Change			2007			2006			% Change
All dollars in thousands except per share data
EARNINGS
Net interest income	$	5,813		$	5,245			10.8	%	$	22,552		$	19,191			17.5	%
Provision for loan losses		201			331			-39.3	%		639			839			-23.8	%
Noninterest income		1,864			1,456			28.0	%		6,665			5,364			24.3	%
Noninterest expense		5,428			4,189			29.6	%		19,502			15,167			28.6	%
Income taxes		602			688			-12.5	%		2,776			2,775			0.0	%
Net income		1,446			1,493			-3.1	%		6,300			5,774			9.1	%
PER SHARE INFORMATION
Earnings per share	$	0.37		$	0.39			-5.1	%	$	1.60		$	1.58			1.3	%
Dividends per share		0.130			0.125			4.0	%		0.520			0.500			4.0	%
Book value per share		18.24			17.09			6.7	%
OPERATING RATIOS (1)
Net interest margin		4.23	%		4.42	%					4.47	%		4.46	%
Return on average assets		0.93	%		1.12	%					1.11	%		1.22	%
Return on average equity		8.05	%		9.24	%					9.04	%		10.05	%
Efficiency ratio		72.23	%		64.78	%					68.46	%		60.96	%
Net chargeoffs / average loans		0.40	%		0.37	%					0.15	%		0.16	%
AVERAGE BALANCES
Loans	$	377,244		$	320,736			17.6	%	$	350,952		$	293,489			19.6	%
Total earning assets		545,675			469,037			16.3	%		504,812			430,130			17.4	%
Total assets		614,823			526,628			16.7	%		566,712			473,173			19.8	%
Deposits		518,313			440,526			17.7	%		478,523			397,637			20.3	%
Borrowed funds		14,321			10,598			35.1	%		10,530			12,960			-18.8	%
Shareholders' equity		71,279			64,135			11.1	%		69,920			57,456			21.7	%
	As of December 31,
END OF PERIOD BALANCES	2007			2006			% Change
Loans	$	374,054		$	335,452			11.5	%
Reserve for loan losses		4,952			4,480			10.5	%
Total earning assets		534,109			483,653			10.4	%
Intangible assets		19,048			13,925			36.8	%
Total assets		606,009			544,017			11.4	%
Deposits		513,931			462,622			11.1	%
Borrowed funds		9,610			5,945			n/m
Shareholders' equity		71,721			67,555			6.2	%
ASSET QUALITY (END OF PERIOD)
Loans 90 days past due and still accruing	$	188		$	1,015
Nonaccrual Loans		1,633			479
Other Real Estate Owned		256			206
Total nonperforming assets		2,077			1,700
Nonperforming assets / total assets		0.34	%		0.31	%
Allowance for loan losses / total loans		1.32	%		1.34	%
(1)  All ratios are annualized.
n/m - percentage change is not meaningful.