----

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**U.S.      SECURITIES AND EXCHANGE COMMISSION **

**WASHINGTON,      D.C. 20549 **

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**FORM      10-QSB **

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| **x** | **QUARTERLY                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|-------|------------------------------------------------------------------------------------------------------------------------------------------|

**For      the quarterly period ended September **
**30,      2005**

|  ̈ | **TRANSITION                REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE                ACT OF                1934** |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------|

**For      the transition period from **
**                  **
**to      **
**                  **

**Commission      File Number: 000-51287 **

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**SouthCrest      Financial Group, Inc. **

**(Exact      name of small business issuer as specified in its charter)**

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| **Georgia**                                                                                         | **58-2256460**                                                         |
|-----------------------------------------------------------------------------------------------------|------------------------------------------------------------------------|
| **(State                or other jurisdiction of****incorporation                or organization)** | **(IRS                Employer****Identification                No.)** |

**600      North Glynn Street**

**Fayetteville,      GA 30214**

**(Address      of principal executive offices) **

**(770)-461-2781      **

**(Issuer’s      telephone number) **

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**(Former      name, former address and former fiscal year, if changed since last report)      **

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**SouthCrest      Financial Group, Inc.**

**And      Subsidiaries**
** **

**INDEX**

|                       |                                                                                                                                                                                               | **Page** |
|----------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------|
| **PART                I.** | **FINANCIAL                INFORMATION**                                                                                                                                                           |     |
|                       |                                                                                                                                                                                               |     |
|                       | **Item                1. Financial                Statements**                                                                                                                                     |     |
|                       |                                                                                                                                                                                               |     |
|                       | **Condensed                Consolidated Balance Sheets - September                30, 2005 and December 31, 2004**                                                                                 | **3**    |
|                       |                                                                                                                                                                                               |     |
|                       | **Condensed                Consolidated Statements of Income -                Three and Nine Months Ended September 30, 2005 and                2004**                                             | **4**    |
|                       |                                                                                                                                                                                               |     |
|                       | **Condensed****Consolidated                Statements of Comprehensive Income - Three****and                Nine****Months                Ended****September                30, 2005 and****2004** | **5**    |
|                       |                                                                                                                                                                                               |     |
|                       | **Condensed                Consolidated Statements of Cash                Flows - Nine Months Ended September 30, 2005 and                2004**                                                   | **6**    |
|                       |                                                                                                                                                                                               |     |
|                       | **Notes                to Condensed Consolidated Financial Statements**                                                                                                                            | **8**    |
|                       |                                                                                                                                                                                               |     |
|                       | **Item                2. Management’s Discussion and Analysis of Financial                Condition and Results of Operations**                                                              | **11**   |
|                       |                                                                                                                                                                                               |     |
|                       | **Item                3. Controls and Procedures**                                                                                                                                                 | **18**   |
|                       |                                                                                                                                                                                               |     |
| **PART II.**          | **OTHER                INFORMATION**                                                                                                                                                               |     |
|                       |                                                                                                                                                                                               |     |
|                       | **Item                2 - Unregistered Sales of Equity Securities and Use of                Proceeds**                                                                                             | **20**   |
|                       |                                                                                                                                                                                               |     |
|                       | **Item                6 - Exhibits**                                                                                                                                                               | **20**   |
|                       |                                                                                                                                                                                               |     |
|                       | **Signatures**                                                                                                                                                                                     | **21**   |

----

*Index*

**PART      I - FINANCIAL INFORMATION**

**ITEM      1. FINANCIAL STATEMENTS**

**SouthCrest      Financial Group, Inc. and      Subsidiaries**

**Condensed      Consolidated Balance Sheets**

**September      30, 2005 and December 31, 2004**

***(Dollars      in thousands except per share amount)***

| **Assets**                                                                                               |   | **(Unaudited)****September                30,****2005** |        | (*)December                31,2004 |   |
|----------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------|-------------|------------------------------------|--------|
| Cash                and due from banks                                                                   |   | **$**                                                   | **10,597**  |                               | $      | 9,814 |   |
| Interest-bearing                deposits at other financial institutions                                 |   |                                                    | **4,660**   |                               |   | 5,246 |   |
| Federal                funds sold                                                                        |   |                                                    | **4,239**   |                               |   | 9,930 |   |
| Securities                available for sale                                                             |   |                                                    | **45,662**  |                               |   | 41,060 |   |
| Securities                held to maturity (fair value $82,776 and $88,239)                              |   |                                                    | **83,375**  |                               |   | 87,921 |   |
| Restricted                equity securities, at cost                                                     |   |                                                    | **1,733**   |                               |   | 620 |   |
| Loans                held for sale                                                                       |   |                                                    | **388**     |                               |   | 675 |   |
| Loans,                net of unearned income                                                             |   |                                                    | **263,453** |                               |   | 229,232 |   |
| Less                allowance for loan losses                                                            |   |                                                    | **3,373**   |                               |   | 3,161 |   |
| Loans,                net                                                                                |   |                                                    | **260,080** |                               |   | 226,071 |   |
| Premises                and equipment, net                                                               |   |                                                    | **10,743**  |                               |   | 8,886 |   |
| Goodwill                                                                                                 |   |                                                    | **2,665**   |                               |   | 2,665 |   |
| Intangible                assets, net                                                                    |   |                                                    | **4,454**   |                               |   | 5,211 |   |
| Other                assets                                                                              |   |                                                    | **9,218**   |                               |   | 9,413 |   |
| **Total                assets**                                                                          |   | **$**                                                   | **437,814** |                               | $      | 407,512 |   |
|                                                                                                     |   |                                                    |        |                               |   |   |   |
| **Liabilities,                Redeemable Common Stock, and Stockholders'                Equity**         |   |                                                    |        |                               |   |   |   |
| Liabilities:                                                                                             |   |                                                    |        |                               |   |   |   |
| Deposits:                                                                                                |   |                                                    |        |                               |   |   |   |
| Noninterest-bearing                                                                                      |   | **$**                                                   | **55,536**  |                               | $      | 56,477 |   |
| Interest-bearing                                                                                         |   |                                                    | **314,418** |                               |   | 295,775 |   |
| Total                deposits                                                                            |   |                                                    | **369,954** |                               |   | 352,252 |   |
| Federal                Home Loan Bank advances                                                           |   |                                                    | **10,275**  |                               |   | 385 |   |
| Other                liabilities                                                                         |   |                                                    | **3,946**   |                               |   | 3,685 |   |
| **Total                liabilities**                                                                     |   |                                                    | **384,175** |                               |   | 356,322 |   |
|                                                                                                     |   |                                                    |        |                               |   |   |   |
| Commitments                and contingencies                                                             |   |                                                    |        |                               |   |   |   |
|                                                                                                     |   |                                                    |        |                               |   |   |   |
| Redeemable                common stock held by ESOP                                                      |   |                                                    | **589**     |                               |   | 450 |   |
|                                                                                                     |   |                                                    |        |                               |   |   |   |
| Stockholders'                equity                                                                      |   |                                                    |        |                               |   |   |   |
| Common                stock, par value $1; 10,000,000 shares authorized, 3,578,724                issued |   |                                                    | **3,579**   |                               |   | 3,579 |   |
| Additional                paid in capital                                                                |   |                                                    | **40,715**  |                               |   | 40,715 |   |
| Retained                earnings                                                                         |   |                                                    | **9,197**   |                               |   | 6,931 |   |
| Accumulated                other comprehensive loss                                                      |   |                                                    | (308        | )                                  |   | (410 | ) |
|                                                                                                     |   |                                                    | **53,183**  |                               |   | 50,815 |   |
| Less                cost of shares of treasury stock                                                     |   |                                                    | (133        | )                                  |   | (75 | ) |
| **Total                stockholders' equity**                                                            |   |                                                    | **53,050**  |                               |   | 50,740 |   |
| **Total                liabilities, redeemable common stock, and stockholders'                equity**   |   | **$**                                                   | **437,814** |                               | $      | 407,512 |   |

**See      Notes to Condensed Consolidated Financial Statements.**

***      Derived from audited consolidated financial statements.**

----

*Index*

**SouthCrest      Financial Group, Inc. and      Subsidiaries**

**Condensed      Consolidated Statements of Income**

**For      The Three and Nine Months Ended September 30, 2005 and      2004**

**(Unaudited)**

***(Dollars      in thousands except per share amounts)***

|                                                                   |   | **Three                Months** |          | **Nine                Months** |   |
|------------------------------------------------------------------------|--------|---------------------------------|---------------|--------------------------------|--------|
|                                                                   |   | **2005**                        |          | 2004                           |   | **2005** |   | 2004 |   |
| **Interest                income:**                                    |   |                            |          |                           |   |   |   |   |   |
| Loans                                                                  |   | **$**                           | **4,647**     |                           | $      | 2,221 |   | **$** | **12,825** |   | $ | 6,621 |   |
| Securities                - Taxable                                    |   |                            | **1,243**     |                           |   | 935 |   |   | **3,797** |   |   | 2,797 |   |
| Securities                - Nontaxable                                 |   |                            | **137**       |                           |   | 99 |   |   | **424** |   |   | 291 |   |
| Federal                funds sold                                      |   |                            | **23**        |                           |   | 17 |   |   | **155** |   |   | 35 |   |
| Interest-bearing                deposits at other banks                |   |                            | **45**        |                           |   | 39 |   |   | **136** |   |   | 112 |   |
| **Total                interest income**                               |   |                            | **6,095**     |                           |   | 3,311 |   |   | **17,337** |   |   | 9,856 |   |
|                                                                   |   |                            |          |                           |   |   |   |   |   |   |   |   |   |
| **Interest                expense:**                                   |   |                            |          |                           |   |   |   |   |   |   |   |   |   |
| Deposits                                                               |   |                            | **1,640**     |                           |   | 853 |   |   | **4,405** |   |   | 2,535 |   |
| Other                borrowings                                        |   |                            | **44**        |                           |   | 6 |   |   | **60** |   |   | 23 |   |
| **Total                interest expense**                              |   |                            | **1,684**     |                           |   | 859 |   |   | **4,465** |   |   | 2,558 |   |
|                                                                   |   |                            |          |                           |   |   |   |   |   |   |   |   |   |
| **Net                interest income**                                 |   |                            | **4,411**     |                           |   | 2,452 |   |   | **12,872** |   |   | 7,298 |   |
| **Provision                for loan losses**                           |   |                            | **246**       |                           |   | 118 |   |   | **519** |   |   | 290 |   |
|                                                                   |   |                            |          |                           |   |   |   |   |   |   |   |   |   |
| **Net                interest income after provision for loan losses** |   |                            | **4,165**     |                           |   | 2,334 |   |   | **12,353** |   |   | 7,008 |   |
|                                                                   |   |                            |          |                           |   |   |   |   |   |   |   |   |   |
| **Other                income:**                                       |   |                            |          |                           |   |   |   |   |   |   |   |   |   |
| Service                charges on deposit accounts                     |   |                            | **914**       |                           |   | 513 |   |   | **2,550** |   |   | 1,442 |   |
| Other                service charges and fees                          |   |                            | **192**       |                           |   | 112 |   |   | **560** |   |   | 341 |   |
| Net                gain on sale of securities available for sale       |   |                            | **320**       |                           |   | - |   |   | **320** |   |   | - |   |
| Impairment                charge on investments (Note 4)               |   |                            | **-**         |                           |   | - |   |   | **(600** | **)** |   | - |   |
| Net                gain on sale of loans                               |   |                            | **32**        |                           |   | 46 |   |   | **110** |   |   | 187 |   |
| Other                operating income                                  |   |                            | **122**       |                           |   | 100 |   |   | **389** |   |   | 259 |   |
| **Total                other income**                                  |   |                            | **1,580**     |                           |   | 771 |   |   | **3,329** |   |   | 2,229 |   |
|                                                                   |   |                            |          |                           |   |   |   |   |   |   |   |   |   |
| **Other                expenses:**                                     |   |                            |          |                           |   |   |   |   |   |   |   |   |   |
| Salaries                and employee benefits                          |   |                            | **1,862**     |                           |   | 914 |   |   | **5,353** |   |   | 2,806 |   |
| Equipment                and occupancy expenses                        |   |                            | **415**       |                           |   | 186 |   |   | **1,163** |   |   | 536 |   |
| Amortization                of intangibles                             |   |                            | **206**       |                           |   | 138 |   |   | **757** |   |   | 413 |   |
| Other                operating expenses                                |   |                            | **1,034**     |                           |   | 555 |   |   | **3,058** |   |   | 1,626 |   |
| **Total                other expenses**                                |   |                            | **3,517**     |                           |   | 1,793 |   |   | **10,331** |   |   | 5,381 |   |
|                                                                   |   |                            |          |                           |   |   |   |   |   |   |   |   |   |
| **Income                before income taxes**                          |   |                            | **2,228**     |                           |   | 1,312 |   |   | **5,351** |   |   | 3,856 |   |
| **Income                tax expense**                                  |   |                            | **715**       |                           |   | 424 |   |   | **1,661** |   |   | 1,171 |   |
| **Net                income**                                          |   | **$**                           | **1,513**     |                           | $      | 888 |   | **$** | **3,690** |   | $ | 2,685 |   |
|                                                                   |   |                            |          |                           |   |   |   |   |   |   |   |   |   |
| **Earnings                per share**                                  |   | **$**                           | **0.42**      |                           | $      | 0.40 |   | **$** | **1.03** |   | $ | 1.23 |   |
| **Dividends                per share**                                 |   | **$**                           | **0.120**     |                           | $      | 0.115 |   | **$** | **0.36****0** |   | $ | 0.345 |   |
| **Weighted                average number of shares outstanding**       |   |                            | **3,571,257** |                           |   | 2,196,716 |   |   | **3,571,455** |   |   | 2,186,027 |   |

**See      Notes to Condensed Consolidated Financial Statements.**

----

*Index*

**SouthCrest      Financial Group, Inc. and      Subsidiaries**

**Condensed      Consolidated Statements of Comprehensive Income**

**For      The Three And Nine Months Ended September 30, 2005 and      2004**

**(Unaudited)**

***(Dollars      in thousands)***

|                                                                                                                             |   | **Three                Months** |      | **Nine                Months** |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|-----------|--------------------------------|--------|
|                                                                                                                             |   | **2005**                        |      | 2004                           |   | **2005** |   | 2004 |   |
|                                                                                                                             |   |                            |      |                           |   |   |   |   |   |
| **Net                income**                                                                                                    |   | **$**                           | **1,513** |                           | $      | 888 |   | **$** | **3,690** |   | $ | 2,685 |   |
|                                                                                                                             |   |                            |      |                           |   |   |   |   |   |   |   |   |   |
| **Other                comprehensive income (loss):**                                                                            |   |                            |      |                           |   |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |                            |      |                           |   |   |   |   |   |   |   |   |   |
| Unrealized                holding gains (loss) on securities available for sale arising during                period, net of tax |   |                            | **(273**  | **)**                          |   | (14 | ) |   | **102** |   |   | (40 | ) |
|                                                                                                                             |   |                            |      |                           |   |   |   |   |   |   |   |   |   |
| **Comprehensive                income**                                                                                          |   | **$**                           | **1,240** |                           | $      | 874 |   | **$** | **3,792** |   | $ | 2,645 |   |

**See      Notes to Condensed Consolidated Financial Statements.**

----

*Index*

**SouthCrest      Financial Group, Inc. and      Subsidiaries**

**Condensed      Consolidated Statements of Cash Flows**

**For      The Nine Months Ended September 30, 2005 and 2004**

**(Unaudited)**

|                                                                                                            |   | ***(Dollars                in thousands)*** |        |
|-----------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|-------------|
|                                                                                                            |   | **2005**                                    |        | 2004 |   |
| **OPERATING                ACTIVITIES**                                                                         |   |                                        |        |   |   |
| Net                income                                                                                       |   | **$**                                       | **3,690**   |   | $ | 2,685 |   |
| Adjustments                to reconcile net income to net cash provided by operating                activities: |   |                                        |        |   |   |   |   |
| Depreciation                                                                                                    |   |                                        | **579**     |   |   | 319 |   |
| Amortization                of intangibles                                                                      |   |                                        | **757**     |   |   | 413 |   |
| Provision                for loan losses                                                                        |   |                                        | **519**     |   |   | 290 |   |
| Amortiztion                of investments                                                                       |   |                                        | **284**     |   |   | 273 |   |
| Impairment                loss on investment securities                                                         |   |                                        | **600**     |   |   | - |   |
| Gain                on sale of securities available for sale                                                    |   |                                        | **(320**    | **)** |   | - |   |
| Deferred                income taxes                                                                            |   |                                        | **(509**    | **)** |   | (169 | ) |
| Income                on bank-owned life insurance                                                              |   |                                        | **(111**    | **)** |   | (86 | ) |
| (Increase)                decrease in interest receivable                                                       |   |                                        | **(177**    | **)** |   | 55 |   |
| Increase                (decrease) in interest payable                                                          |   |                                        | **209**     |   |   | (198 | ) |
| Net                gain on sale of loans                                                                        |   |                                        | **(110**    | **)** |   | (187 | ) |
| Originations                of mortgage loans held for sale                                                     |   |                                        | **(8,878**  | **)** |   | (12,759 | ) |
| Proceeds                from sales of mortgage loans held for sale                                              |   |                                        | **9,275**   |   |   | 13,424 |   |
| Other                assets and liabilities, net                                                                |   |                                        | **597**     |   |   | (335 | ) |
| Net                cash provided by operating activities                                                        |   |                                        | **6,405**   |   |   | 3,725 |   |
| **INVESTING                ACTIVITIES**                                                                         |   |                                        |        |   |   |   |   |
| Purchases                of securities held to maturity                                                         |   |                                        | **(8,667**  | **)** |   | (11,124 | ) |
| Proceeds                from maturities of securities held to maturity                                          |   |                                        | **13,043**  |   |   | 16,672 |   |
| Purchases                of securities available for sale                                                       |   |                                        | **(13,001** | **)** |   | - |   |
| Proceeds                from maturities of securities available for sale                                        |   |                                        | **6,377**   |   |   | - |   |
| Proceeds                from sales of securities available for sale                                             |   |                                        | **1,794**   |   |   | - |   |
| Purchases                of restricted equity securities                                                        |   |                                        | **(1,113**  | **)** |   | (90 | ) |
| Net                (increase) decrease in interest-bearing deposits in banks                                    |   |                                        | **586**     |   |   | (84 | ) |
| Net                decrease in federal funds sold                                                               |   |                                        | **5,691**   |   |   | 7,900 |   |
| Net                increase in loans                                                                            |   |                                        | **(34,269** | **)** |   | (9,927 | ) |
| Purchase                of premises and equipment                                                               |   |                                        | **(2,437**  | **)** |   | (762 | ) |
| Proceeds                from sale of other real estate owned                                                    |   |                                        | **126**     |   |   | 120 |   |
| Net                cash acquired in business combination                                                        |   |                                        | **-**       |   |   | 3,899 |   |
| Net                cash provided by (used in) investing activities                                              |   |                                        | **(31,870** | **)** |   | 6,604 |   |
| **FINANCING                ACTIVITIES**                                                                         |   |                                        |        |   |   |   |   |
| Net                increase (decrease) in deposits                                                              |   |                                        | **17,702**  |   |   | (6,077 | ) |
| Principal                repayments on Federal Home Loan Bank advances                                          |   |                                        | **(110**    | **)** |   | (110 | ) |
| Increases                in Federal Home Loan Bank advances                                                     |   |                                        | **10,000**  |   |   | - |   |
| Net                increase in federal funds purchased                                                          |   |                                        | **-**       |   |   | 400 |   |
| Proceeds                from other borrowings                                                                   |   |                                        | **1,500**   |   |   | - |   |
| Principal                repayments on other borrowings                                                         |   |                                        | **(1,500**  | **)** |   | - |   |
| Purchase                of treasury stock                                                                       |   |                                        | **(58**     | **)** |   | - |   |
| Dividends                paid                                                                                   |   |                                        | **(1,286**  | **)** |   | (745 | ) |
| Net                cash provided by (used in) financing activities                                              |   |                                        | **26,248**  |   |   | (6,532 | ) |
| Net                increase in cash and due from banks                                                          |   |                                        | **783**     |   |   | 3,797 |   |
| Cash                and due from banks at beginning of year                                                     |   |                                        | **9,814**   |   |   | 7,262 |   |
| Cash                and due from banks at end of period                                                         |   | **$**                                       | **10,597**  |   | $ | 11,059 |   |

**See      Notes to Condensed Consolidated Financial Statements.**

----

*Index*

**SouthCrest      Financial Group, Inc. and      Subsidiaries**

**Condensed      Consolidated Statements of Cash Flows (continued)**

**For      The Nine Months Ended September 30, 2005 and 2004**

**(Unaudited)**

|                                                                              |   | ***(Dollars                in thousands)*** |      |
|-----------------------------------------------------------------------------------|--------|---------------------------------------------|-----------|
|                                                                              |   | **2005**                                    |      | 2004 |   |
|                                                                              |   |                                        |      |   |   |
| **SUPPLEMENTAL                DISCLOSURES**                                       |   |                                        |      |   |   |
| Cash                paid for:                                                     |   |                                        |      |   |   |
| Interest                                                                          |   | **$**                                       | **4,256** |   | $ | 2,756 |   |
| Income                taxes                                                       |   |                                        | **1,822** |   |   | 1,165 |   |
|                                                                              |   |                                        |      |   |   |   |   |
| **NONCASH                TRANSACTIONS**                                           |   |                                        |      |   |   |   |   |
| Principal                balances of loans transferred to other real estate owned |   | **$**                                       | **183**   |   | $ | 106 |   |
| Increase                in redeemable common stock held by ESOP                   |   |                                        | **139**   |   |   | - |   |
| Unrealized                gain (loss) on securities available for sale, net       |   |                                        | **102**   |   |   | (40 | ) |
|                                                                              |   |                                        |      |   |   |   |   |
| **BUSINESS                COMBINATION**                                           |   |                                        |      |   |   |   |   |
| Cash                and due from banks, net of cash paid                          |   | **$**                                       | **-**     |   | $ | 3,899 |   |
| Federal                funds sold                                                 |   |                                        | **-**     |   |   | 2,166 |   |
| Securities                available for sale                                      |   |                                        | **-**     |   |   | 37,861 |   |
| Restricted                equity securities                                       |   |                                        | **-**     |   |   | 32 |   |
| Loans,                net                                                         |   |                                        | **-**     |   |   | 98,016 |   |
| Premises                and equipment                                             |   |                                        | **-**     |   |   | 3,980 |   |
| Goodwill                                                                          |   |                                        | **-**     |   |   | 2,665 |   |
| Core                deposit intangible                                            |   |                                        | **-**     |   |   | 2,396 |   |
| Other                assets                                                       |   |                                        | **-**     |   |   | 3,484 |   |
| Deposits                                                                          |   |                                        | **-**     |   |   | (128,422 | ) |
| Other                liabilities                                                  |   |                                        | **-**     |   |   | (2,333 | ) |
| Net                liabilities assumed                                            |   | **$**                                       | **-**     |   | $ | 23,744 |   |

**See      Notes to Condensed Consolidated Financial Statements.**

----

*Index*

**SouthCrest      Financial Group, Inc. and      Subsidiaries**

**Notes      to Condensed Consolidated Financial Statements **

**(Unaudited)      **

**NOTE      1 - NATURE OF BUSINESS AND BASIS OF PRESENTATION**

**NOTE      2 - EARNINGS PER COMMON SHARE**

**NOTE      3 - LOANS RECEIVABLE**

| *(dollars                in thousands)*                |   | **September                30, 2005** |        | December                31, 2004 |   |
|--------------------------------------------------------|--------|---------------------------------------|-------------|----------------------------------|--------|
| Commercial,                financial, and agricultural |   | **$**                                 | **17,733**  |                             | $      | 18,560 |   |
| Real                estate - construction              |   |                                  | **44,619**  |                             |   | 25,265 |   |
| Real                estate - mortgage                  |   |                                  | **157,265** |                             |   | 145,413 |   |
| Consumer                                               |   |                                  | **32,492**  |                             |   | 35,680 |   |
| Other                                                  |   |                                  | **11,410**  |                             |   | 4,415 |   |
|                                                   |   |                                  | **263,519** |                             |   | 229,333 |   |
| Unearned                income                         |   |                                  | **(66**     | **)**                            |   | (101 | ) |
| Allowance                for loan losses               |   |                                  | **(3,373**  | **)**                            |   | (3,161 | ) |
| Loans,                net                              |   | **$**                                 | **260,080** |                             | $      | 226,071 |   |

----

*Index*

**NOTE      4 - IMPAIRMENT OF SECURITIES**

**NOTE      5 - OTHER BORROWED FUNDS**

**NOTE      6 - COMPLETION OF MERGER WITH FIRST POLK BANKSHARES, INC.**

| ***(dollars                in thousands except per share amounts)*** |   |                            |   |                            |   |     |   |     |   |
|----------------------------------------------------------------------|--------|---------------------------------|--------|---------------------------------|--------|----------|--------|----------|--------|
|                                                                 |   | **Three                Months** |   | **Year                To Date** |   |
|                                                                 |   | **2005**                        |   | **2004**                        |   | **2005** |   | **2004** |   |
| Revenues                                                             |   | $                               | 7,675  |                            | $      | 6,618    |   | $        | 20,666 |   | $ | 19,639 |   |
| Net                Income                                            |   | $                               | 1,513  |                            | $      | 1,408    |   | $        | 3,690  |   | $ | 4,167 |   |
| Earnings                per share                                    |   | $                               | 0.42   |                            | $      | 0.38     |   | $        | 1.03   |   | $ | 1.14 |   |

----

*Index*

**NOTE      7 - INTANGIBLE ASSETS**

|                                   |   | As                of September 30, 2005 |   | As                of December 31, 2004 |   |
|----------------------------------------|--------|-----------------------------------------|--------|----------------------------------------|--------|
|                                   |   | GrossCarryingAmount                     |   | AccumulatedAmortization                |   | GrossCarryingAmount |   | AccumulatedAmortization |   |
|                                   |   |                                    |   |                                   |   |   |   |   |   |
| Goodwill                               |   | $                                       | 2,665  |                                   | $      | - |   | $ | 2,665 |   | $ | - |   |
|                                   |   |                                    |   |                                   |   |   |   |   |   |   |   |   |   |
| Core                Deposit Intangible |   | $                                       | 7,674  |                                   | $      | (3,220 | ) | $ | 7,674 |   | $ | (2,463 | ) |

| 2005       |   | $      | 963   |   |
|------------|--------|--------|-------|--------|
| 2006       |   |   | 785   |   |
| 2007       |   |   | 750   |   |
| 2008       |   |   | 750   |   |
| 2009       |   |   | 725   |   |
| Thereafter |   |   | 1,238 |   |
| Total      |   | $      | 5,211 |   |

**NOTE      8 - STOCK REPURCHASE PROGRAM**

----

*Index*

**SouthCrest      Financial Group, Inc. and Subsidiaries **

| **ITEM                2.** | **Management’s                Discussion and Analysis of Financial Condition and Results of Operations** |
|----------------------------|----------------------------------------------------------------------------------------------------------------|

**Forward      Looking Statements **

**Critical      Accounting Estimates **

----

*Index*

**Accounting      Pronouncements Affecting Future Periods**

*Accounting      for Stock-Based Compensation*

**Merger      with First Polk**

**Liquidity      and Capital Resources **

|                                     |   | MinimumRequired |   | MinimumRequiredto                be WellCapitalized |   | Consolidated |   | Upson  |   | Polk   |   |
|------------------------------------------|--------|-----------------|--------|-----------------------------------------------------|--------|--------------|--------|--------|--------|--------|--------|
|                                     |   |            |   |                                                |   |         |   |   |   |   |   |
| Risk-based                capital ratios |   |            |   |                                                |   |         |   |   |   |   |   |
| Total                risk based capital  |   |            | 8.00   | %                                                   |   | 10.00        | %      |   | 18.12  | %      |   | 15.93 | % |   | 21.18 | % |
| Tier                1                    |   |            | 4.00   | %                                                   |   | 6.00         | %      |   | 16.93  | %      |   | 14.78 | % |   | 19.93 | % |
| Tier                1 leverage ratio     |   |            | 4.00   | %                                                   |   | 5.00         | %      |   | 11.05  | %      |   | 9.89 | % |   | 12.43 | % |

----

*Index*

**Off-Balance      Sheet Arrangements **

| *(dollars                in thousands)*     |   | **September                30,****2005** |       | December                31,2004 |   |
|---------------------------------------------|--------|------------------------------------------|------------|---------------------------------|--------|
| Commitments                to extend credit |   | **$**                                    | **38,679** |                            | $      | 22,391 |   |
| Credit                card commitments      |   |                                     | **8,036**  |                            |   | 7,584 |   |
| Commercial                letters of credit |   |                                     | **147**    |                            |   | 261 |   |
|                                        |   | **$**                                    | **46,862** |                            | $      | 30,236 |   |

**Financial      Condition **

----

*Index*

**Loan      Portfolio**
*.      *

| *(dollars                in thousands)*                |   | **September                30, 2005** |        | December                31, 2004 |   |
|--------------------------------------------------------|--------|---------------------------------------|-------------|----------------------------------|--------|
| Commercial,                financial, and agricultural |   | **$**                                 | **17,733**  |                             | $      | 18,560 |   |
| Real                estate - construction              |   |                                  | **44,619**  |                             |   | 25,265 |   |
| Real                estate - mortgage                  |   |                                  | **157,265** |                             |   | 145,413 |   |
| Consumer                                               |   |                                  | **32,492**  |                             |   | 35,680 |   |
| Other                                                  |   |                                  | **11,410**  |                             |   | 4,415 |   |
|                                                   |   |                                  | **263,519** |                             |   | 229,333 |   |
| Unearned                income                         |   |                                  | **(66**     | **)**                            |   | (101 | ) |
| Allowance                for loan losses               |   |                                  | **(3,373**  | **)**                            |   | (3,161 | ) |
| Loans,                net                              |   | **$**                                 | **260,080** |                             | $      | 226,071 |   |

**Nonaccrual,      Past Due and Restructured Loans**
*.      *

| ***(Dollars                in thousands)***                      |   | **September                30,****2005** |   | **December                31****2004** |   |
|------------------------------------------------------------------|--------|------------------------------------------|--------|----------------------------------------|--------|
|                                                             |   |                                     |   |                                   |   |
| Nonaccrual                loans                                  |   | $                                        | 484    |                                   | $      | 190 |   |
|                                                             |   |                                     |   |                                   |   |   |   |
| Loans                past due 90 days or more and still accruing |   | $                                        | 575    |                                   | $      | 186 |   |
|                                                             |   |                                     |   |                                   |   |   |   |
| Loans                restructured under troubled debt            |   | $                                        | -      |                                   | $      | - |   |

| *(Dollars                in thousands)*                                                             |   | **September                30,****2005** |   | **December                31,****2004** |   |
|-----------------------------------------------------------------------------------------------------|--------|------------------------------------------|--------|-----------------------------------------|--------|
|                                                                                                |   |                                     |   |                                    |   |
| Impaired                loans without a valuation allowance                                         |   | $                                        | -      |                                    | $      | - |   |
| Impaired                loans with valuation allowances of $73 and $29,                respectively |   | $                                        | 484    |                                    | $      | 190 |   |
| Average                investment in impaired loans for the period                                  |   | $                                        | 342    |                                    | $      | 47 |   |

**Summary      of Loan Loss Experience.**
* *

----

*Index*

**Analysis      of Allowance for Loan Losses**

| (Dollars                in thousands)                                                                                              |   | **Three                Months** |   | **Nine                Months** |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|--------|--------------------------------|--------|
|                                                                                                                               |   | **2005**                        |   | **2004**                       |   | **2005** |   | **2004** |   |
|                                                                                                                               |   |                            |   |                           |   |   |   |   |   |
| Balance                at beginning of period                                                                                      |   | $                               | 3,253  |                           | $      | 1,886 |   | $ | 3,161 |   | $ | 1,825 |   |
| Charge-offs                                                                                                                        |   |                            |   |                           |   |   |   |   |   |   |   |   |   |
| Commercial                loans                                                                                                    |   |                            | 31     |                           |   | 25 |   |   | 31 |   |   | 25 |   |
| Real                estate - construction                                                                                          |   |                            | -      |                           |   | - |   |   | - |   |   | - |   |
| Real                estate - mortgage                                                                                              |   |                            | -      |                           |   | - |   |   | 11 |   |   | 23 |   |
| Consumer                                                                                                                           |   |                            | 137    |                           |   | 34 |   |   | 424 |   |   | 192 |   |
| Other                                                                                                                              |   |                            | 57     |                           |   | 54 |   |   | 141 |   |   | 131 |   |
| Total                charge-offs                                                                                                   |   |                            | 225    |                           |   | 113 |   |   | 607 |   |   | 371 |   |
|                                                                                                                               |   |                            |   |                           |   |   |   |   |   |   |   |   |   |
| Recoveries                                                                                                                         |   |                            |   |                           |   |   |   |   |   |   |   |   |   |
| Commercial                loans                                                                                                    |   |                            | -      |                           |   | 24 |   |   | 2 |   |   | 24 |   |
| Real                estate - construction                                                                                          |   |                            | -      |                           |   | - |   |   | - |   |   | - |   |
| Real                estate - mortgage                                                                                              |   |                            | -      |                           |   | - |   |   | - |   |   | 31 |   |
| Consumer                                                                                                                           |   |                            | 77     |                           |   | 11 |   |   | 223 |   |   | 87 |   |
| Other                                                                                                                              |   |                            | 22     |                           |   | 17 |   |   | 75 |   |   | 57 |   |
| Total                recoveries                                                                                                    |   |                            | 99     |                           |   | 52 |   |   | 300 |   |   | 199 |   |
|                                                                                                                               |   |                            |   |                           |   |   |   |   |   |   |   |   |   |
| Net                (charge-offs)                                                                                                   |   |                            | (126   | )                              |   | (61 | ) |   | (307 | ) |   | (172 | ) |
| Additions                charged to operations                                                                                     |   |                            | 246    |                           |   | 118 |   |   | 519 |   |   | 290 |   |
| Addition                resulting from business combination                                                                        |   |                            | -      |                           |   | 1,261 |   |   | - |   |   | 1,261 |   |
| Balance                at end of period                                                                                            |   | $                               | 3,373  |                           | $      | 3,204 |   | $ | 3,373 |   | $ | 3,204 |   |
| Annualized                ratio of net charge-offs during the period to average loans outstanding                during the period |   |                            | 0.20   | %                              |   | 0.18 | % |   | 0.17 | % |   | 0.18 | % |

**Allowance      for Loan Losses. **

**Results      of Operations For The Three and Nine Months Ended September 30, 2005 and 2004      **

----

*Index*

**Net      Interest Income**
*.      *

*(Dollars      in thousands)*

|                                                |   | Average                Balances (1) |    | Yields                / Rates |   | Income                / Expense |   | Increase |   | Change                Due to |   |
|-----------------------------------------------------|--------|-------------------------------------|---------|-------------------------------|--------|---------------------------------|--------|----------|--------|------------------------------|--------|
|                                                |   | 2005                                |    | 2004                          |   | 2005                            |   | 2004     |   | 2005                         |   | 2004 |   | (Decrease) |   | Rate |   | Volume |   |
| **Assets**                                          |   |                                |    |                          |   |                            |   |     |   |                         |   |   |   |   |   |   |   |   |   |
| Loans,                including fee income          |   | $                                   | 255,713 |                          | $      | 131,423                         |   |     | 7.21   | %                            |   | 6.72 | % | $ | 4,647 |   | $ | 2,221 |   | $ | 2,426 |   | $ | 174 |   | $ | 2,252 |   |
| Taxable                securities                   |   |                                | 118,963 |                          |   | 85,187                          |   |     | 4.15   | %                            |   | 4.37 | % |   | 1,243 |   |   | 935 |   |   | 308 |   |   | (297 | ) |   | 605 |   |
| Nontaxable                securities                |   |                                | 12,022  |                          |   | 8,182                           |   |     | 4.52   | %                            |   | 4.81 | % |   | 137 |   |   | 99 |   |   | 38 |   |   | (38 | ) |   | 76 |   |
| Federal                funds sold                   |   |                                | 3,488   |                          |   | 3,847                           |   |     | 2.62   | %                            |   | 1.76 | % |   | 23 |   |   | 17 |   |   | 6 |   |   | 15 |   |   | (9 | ) |
| Interest                bearing deposits in banks   |   |                                | 4,711   |                          |   | 4,877                           |   |     | 3.79   | %                            |   | 3.18 | % |   | 45 |   |   | 39 |   |   | 6 |   |   | 14 |   |   | (8 | ) |
| Total                earning assets                 |   |                                | 394,897 |                          |   | 233,516                         |   |     | 6.12   | %                            |   | 5.64 | % |   | 6,095 |   |   | 3,311 |   |   | 2,784 |   |   | (132 | ) |   | 2,916 |   |
| Cash                and due from banks              |   |                                | 10,052  |                          |   | 7,051                           |   |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance                for loan losses            |   |                                | (3,278  | )                             |   | (1,909                          | )      |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                assets                         |   |                                | 29,721  |                          |   | 12,968                          |   |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |                                |    |                          |   |                            |   |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                               |   | $                                   | 431,392 |                          | $      | 251,627                         |   |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |                                |    |                          |   |                            |   |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and Equity**           |   |                                |    |                          |   |                            |   |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                bearing demand (2)          |   | $                                   | 118,152 |                          | $      | 73,352                          |   |     | 1.14   | %                            |   | 0.87 | % | $ | 340 |   | $ | 161 |   | $ | 179 |   | $ | 60 |   | $ | 119 |   |
| Savings                                             |   |                                | 37,805  |                          |   | 20,177                          |   |     | 0.54   | %                            |   | 0.47 | % |   | 51 |   |   | 24 |   |   | 27 |   |   | 4 |   |   | 23 |   |
| Certificates                of deposit              |   |                                | 156,093 |                          |   | 96,077                          |   |     | 3.17   | %                            |   | 2.77 | % |   | 1,249 |   |   | 668 |   |   | 581 |   |   | 109 |   |   | 472 |   |
| Total                interest bearing deposits      |   |                                | 312,050 |                          |   | 189,606                         |   |     | 2.09   | %                            |   | 1.79 | % |   | 1,640 |   |   | 853 |   |   | 787 |   |   | 173 |   |   | 614 |   |
| Borrowed                funds                       |   |                                | 3,866   |                          |   | 641                             |   |     | 4.52   | %                            |   | 3.72 | % |   | 44 |   |   | 6 |   |   | 38 |   |   | 2 |   |   | 36 |   |
| Total                interest bearing liabilities   |   |                                | 315,916 |                          |   | 190,247                         |   |     | 2.11   | %                            |   | 1.80 | % |   | 1,684 |   |   | 859 |   |   | 825 |   |   | 175 |   |   | 650 |   |
| Noninterest                bearing demand deposits  |   |                                | 58,439  |                          |   | 32,102                          |   |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                liabilities                    |   |                                | 3,827   |                          |   | 892                             |   |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders'                equity                 |   |                                | 53,210  |                          |   | 28,385                          |   |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |                                |    |                          |   |                            |   |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                               |   | $                                   | 431,392 |                          | $      | 251,627                         |   |     |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                  |   |                                |    |                          |   |                            |   |     |   |                         |   |   |   | $ | 4,411 |   | $ | 2,452 |   | $ | 1,959 |   | $ | (307 | ) | $ | 2,266 |   |
| Net                interest yield on earning assets |   |                                |    |                          |   |                            |   |     | 4.43   | %                            |   | 4.18 | % |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest spread                  |   |                                |    |                          |   |                            |   |     | 4.01   | %                            |   | 3.84 | % |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1) | Daily                averages. Loans include nonaccrual                loans. |
|-----|-------------------------------------------------------------------------------|

| (2) | Includes                money market accounts |
|-----|-----------------------------------------------|

----

*Index*

*(Dollars      in thousands)*

|                                                |   |                                |    |                          |   |                            |   |     |   |                         |   |   |   |       |   |   |   |   |   |
|-----------------------------------------------------|--------|-------------------------------------|---------|-------------------------------|--------|---------------------------------|--------|----------|--------|------------------------------|--------|--------|--------|------------|--------|--------|--------|--------|--------|
|                                                |   | Average                Balances (1) |    | Yields                / Rates |   | Income                / Expense |   | Increase |   | Change                Due to |   |
|                                                |   | 2005                                |    | 2004                          |   | 2005                            |   | 2004     |   | 2005                         |   | 2004   |   | (Decrease) |   | Rate   |   | Volume |   |
| **Assets**                                          |   |                                |    |                          |   |                            |   |     |   |                         |   |   |   |       |   |   |   |   |   |
| Loans,                including fee income          |   | $                                   | 240,804 |                          | $      | 130,521                         |   |     | 7.12   | %                            |   | 6.78   | %      | $          | 12,825 |   | $      | 6,621  |   | $ | 6,204 |   | $ | 348 |   | $ | 5,856 |   |
| Taxable                securities                   |   |                                | 121,780 |                          |   | 86,362                          |   |     | 4.17   | %                            |   | 4.33   | %      |       | 3,797  |   |   | 2,797  |   |   | 1,000 |   |   | (171 | ) |   | 1,171 |   |
| Nontaxable                securities                |   |                                | 12,439  |                          |   | 7,909                           |   |     | 4.56   | %                            |   | 4.91   | %      |       | 424    |   |   | 291    |   |   | 133 |   |   | (35 | ) |   | 168 |   |
| Federal                funds sold                   |   |                                | 7,824   |                          |   | 3,881                           |   |     | 2.65   | %                            |   | 1.20   | %      |       | 155    |   |   | 35     |   |   | 120 |   |   | 65 |   |   | 55 |   |
| Interest                bearing deposits in banks   |   |                                | 4,837   |                          |   | 4,879                           |   |     | 3.76   | %                            |   | 3.07   | %      |       | 136    |   |   | 112    |   |   | 24 |   |   | 25 |   |   | (1 | ) |
| Total                earning assets                 |   |                                | 387,684 |                          |   | 233,552                         |   |     | 5.98   | %                            |   | 5.64   | %      |       | 17,337 |   |   | 9,856  |   |   | 7,481 |   |   | 232 |   |   | 7,249 |   |
| Cash                and due from banks              |   |                                | 10,583  |                          |   | 7,271                           |   |     |   |                         |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance                for loan losses            |   |                                | (3,219  | )                             |   | (1,893                          | )      |     |   |                         |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                assets                         |   |                                | 27,404  |                          |   | 13,261                          |   |     |   |                         |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |                                |    |                          |   |                            |   |     |   |                         |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                               |   | $                                   | 422,452 |                          | $      | 252,191                         |   |     |   |                         |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |                                |    |                          |   |                            |   |     |   |                         |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and Equity**           |   |                                |    |                          |   |                            |   |     |   |                         |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                bearing demand (2)          |   | $                                   | 116,586 |                          | $      | 72,630                          |   |     | 0.98   | %                            |   | 0.76   | %      | $          | 858    |   | $      | 411    |   | $ | 447 |   | $ | 145 |   | $ | 302 |   |
| Savings                                             |   |                                | 37,207  |                          |   | 19,910                          |   |     | 0.50   | %                            |   | 0.48   | %      |       | 140    |   |   | 72     |   |   | 68 |   |   | 3 |   |   | 65 |   |
| Certificates                of deposit              |   |                                | 152,611 |                          |   | 97,361                          |   |     | 2.98   | %                            |   | 2.82   | %      |       | 3,407  |   |   | 2,052  |   |   | 1,355 |   |   | 123 |   |   | 1,232 |   |
| Total                interest bearing deposits      |   |                                | 306,404 |                          |   | 189,901                         |   |     | 1.92   | %                            |   | 1.78   | %      |       | 4,405  |   |   | 2,535  |   |   | 1,870 |   |   | 271 |   |   | 1,599 |   |
| Borrowed                funds                       |   |                                | 1,720   |                          |   | 639                             |   |     | 4.66   | %                            |   | 4.81   | %      |       | 60     |   |   | 23     |   |   | 37 |   |   | (1 | ) |   | 38 |   |
| Total                interest bearing liabilities   |   |                                | 308,124 |                          |   | 190,540                         |   |     | 1.94   | %                            |   | 1.79   | %      |       | 4,465  |   |   | 2,558  |   |   | 1,907 |   |   | 270 |   |   | 1,637 |   |
| Noninterest                bearing demand deposits  |   |                                | 58,144  |                          |   | 32,599                          |   |     |   |                         |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other                liabilities                    |   |                                | 3,865   |                          |   | 1,731                           |   |     |   |                         |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Shareholders'                equity                 |   |                                | 52,319  |                          |   | 27,321                          |   |     |   |                         |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |                                |    |                          |   |                            |   |     |   |                         |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                               |   | $                                   | 422,452 |                          | $      | 252,191                         |   |     |   |                         |   |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest income                  |   |                                |    |                          |   |                            |   |     |   |                         |   |   |   | $          | 12,872 |   | $      | 7,298  |   | $ | 5,574 |   | $ | (38 | ) | $ | 5,612 |   |
| Net                interest yield on earning assets |   |                                |    |                          |   |                            |   |     | 4.44   | %                            |   | 4.17   | %      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                interest spread                  |   |                                |    |                          |   |                            |   |     | 4.04   | %                            |   | 3.85   | %      |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1) | Daily                averages. Loans includes nonaccrual                loans. |
|-----|--------------------------------------------------------------------------------|

| (2) | Includes                money market accounts |
|-----|-----------------------------------------------|

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*Index*

**Other      Income**
*.      *

**Other      Expenses.**

**Income      Taxes.**

| **ITEM                3.** | **Controls                and Procedures** |
|----------------------------|--------------------------------------------|

----

*Index*

----

*Index*

**PART      II - OTHER INFORMATION **

| **ITEM                2.** | **UNREGISTERED                SALES OF EQUITY SECURITIES AND USE OF                PROCEEDS** |
|----------------------------|-----------------------------------------------------------------------------------------------|

|                            |   | Total                Number ofShares                Purchased (1) |   | Average                PricePaid                Per Share |   | Total                Number ofShares                Purchased asPart                of PubliclyAnnounced                Plans orPrograms |   | Maximum                Numberof                Shares that MayYet                Be PurchasedUnder                the Plans orPrograms |   |
|---------------------------------|--------|-------------------------------------------------------------------|--------|-----------------------------------------------------------|--------|------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------|
|                            |   |                                                              |   |                                                      |   |                                                                                                                                     |   |                                                                                                                                   |   |
| July                1 - 31      |   |                                                              | -      |                                                      | $      | -                                                                                                                                        |   |                                                                                                                                   | -      |   |   | - |   |
| August                1 - 31    |   |                                                              | -      |                                                      | $      | -                                                                                                                                        |   |                                                                                                                                   | -      |   |   | - |   |
| September                1 - 30 |   |                                                              | 2,500  |                                                      | $      | 23.00                                                                                                                                    |   |                                                                                                                                   | 2,500  |   |   | 97,500 |   |

|   | (1) | Shares                were repurchased in an open-market                transaction. |
|--------|-----|--------------------------------------------------------------------------------------|

| **ITEM                6.** | **EXHIBITS.** |
|----------------------------|---------------|

|   | 31.1 | Rule                15d-14(a) Certification of Principal Executive                Officer. |
|--------|------|--------------------------------------------------------------------------------------------|

|   | 31.2 | Rule                15d-14(a) Certification of Principal Financial                Officer |
|--------|------|-------------------------------------------------------------------------------------------|

|   | 32.1 | Section                1350 Certification of Principal Executive                Officer |
|--------|------|-----------------------------------------------------------------------------------------|

|   | 32.2 | Section                1350 Certification of Principal Financial                Officer |
|--------|------|-----------------------------------------------------------------------------------------|

----

*Index*

SIGNAT

|                                                  |   |                                                          |
|-------------------------------------------------------|--------|---------------------------------------------------------------|
| DATE:                November 14,                2005 | BY:    | /s/                Larry T. Kuglar                            |
|                                                  |   | Larry                T. Kuglar.                               |
|                                                  |   | President                and Chief Executive Officer          |
|                                                  |   |                                                          |
| DATE:                November 14,                2005 | BY:    | /s/                Douglas J. Hertha                          |
|                                                  |   | Douglas                J. Hertha                              |
|                                                  |   | Senior                Vice President, Chief Financial Officer |

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