----

----

| UTAH                                                           | 87-0345941                           |
|----------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |

| 5300 South 360 West, Suite 250 Salt Lake City, Utah | 84123      |
|-----------------------------------------------------|------------|
| (Address of principal executive offices)            | (Zip Code) |
|                                                |       |

| Registrant’s telephone number, including area code:    (801) 264-1060 |
|-------------------------------------------------------------------------------------------------|

| Title of Each Class                   | Name of Each Exchange on Which Registered |
|---------------------------------------|-------------------------------------------|
| Class A Common Stock, $2.00 Par Value | Nasdaq National Market                    |
| Class C Common Stock, $0.20 Par Value | None                                      |

----

----

----

|                          |   | 2010   |      |   | 2009   |   |      | 2008   |   |   |      | 2007   |   |   |   | 2006      |   |
|-------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|--------|--------|-----------|--------|
| Life Insurance                |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |      |   |
| Policy/Cert.  Count |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |      |   |
| as of December 31             |   |   | 398,774   |   |   |   | 407,673   |   |   |   | 415,656   |   | (2)    |   |   | 405,224   |   | (1) |   |   | 401,441 |   |
| Insurance in force as of      |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
|  December 31             |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
| (omitted 000)                 |   | $      | 3,003,622 |   |   | $      | 2,617,946 |   |   | $      | 2,454,409 |   | (2)    |   | $      | 2,434,733 |   | (1) |   | $ | 2,620,694 |   |
| Premiums Collected            |   |   |      |   |   |   |      |   |   |   |      |   |   |   |   |      |   |   |   |   |   |   |
| (omitted 000)                 |   | $      | 38,579    |   |   | $      | 38,399    |   | (2)    | $      | 36,063    |   | (1)    |   | $      | 32,173    |   |   |   | $ | 31,619 |   |

|   | (1) | Includes the purchase of Capital Reserve Life Insurance Company on December 17, 2007. |
|--------|-----|---------------------------------------------------------------------------------------|

|   | (2) | Includes the purchase of Southern Security Life Insurance Company on December 18, 2008. |
|--------|-----|-----------------------------------------------------------------------------------------|

|   | Age Nearest    | Non-Medical                                                                           |
|--------|----------------|---------------------------------------------------------------------------------------|
|   |  Birthday |        Limits        |
|   |  0-50     | $100,000                                                                              |
|   | 51-up          | Medical information                                                                   |
|   |           | required (APS or exam)                                                                |

----

|                                           |   | 2010   |   |   | 2009   |   |   | 2008   |   |   |   | 2007   |   |   |   | 2006   |   |
|------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Annuities Policy/Cert. Count as of December 31 |   |   | 12,344 |   |   |   | 12,366 |   |   |   | 11,411 |   | (2)    |   |   | 11,175 |   | (1) |   |   | 8,475 |   |
| Deposits Collected (omitted 000)               |   | $      | 6,166  |   |   | $      | 6,737  |   |   | $      | 8,959  |   | (1)(2) |   | $      | 4,080  |   |   |   | $ | 3,977 |   |

|   | (1) | Includes the purchase of Capital Reserve Life Insurance Company on December 17, 2007. |
|--------|-----|---------------------------------------------------------------------------------------|

|   | (2) | Includes the purchase of Southern Security Life Insurance Company on December 18, 2008. |
|--------|-----|-----------------------------------------------------------------------------------------|

|                                                     |   | 2010   |   |   | 2009   |   |   | 2008   |   |   | 2007   |   |   | 2006   |   |
|----------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
| Accident and Health Policy/Cert. Count as of December 31 |   |   | 9,269  |   |   |   | 13,436 |   |   |   | 14,060 |   |   |   | 14,845 |   |   |   | 15,340 |   |
| Premiums Collected (omitted 000)                         |   | $      | 203    |   |   | $      | 219    |   |   | $      | 232    |   |   | $      | 257    |   |   | $ | 274 |   |

----

----

----

----

----

----

| Location                             |            Function | OwnedLeased | ApproximateSquareFootage |
|--------------------------------------|----------------------------------------------------------------------------|-------------|--------------------------|
| 5300 South 360 West                  | Corporate Headquarters                                                     | Owned       | 30,200                   |
| Salt Lake City, Utah                 |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 755 Rinehart Road                    | Mortgage Sales                                                             | Owned (1)   | 5,000                    |
| Lake Mary, Florida                   |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 3935 I-55 South, Frontage Road       | Insurance Operations                                                       | Owned (2)   | 12,000                   |
| Jackson, Mississippi                 |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 497-A Sutton Bridge Road             | Fast Funding Operations                                                    | Leased (3)  | 5,500                    |
| Rainbow City, Alabama                |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 5701 West Talavi Boulevard           | Mortgage Sales                                                             | Leased (4)  | 2,200                    |
| Glendale, Arizona                    |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 4634 Town Center Blvd., Suite 314    | Mortgage Sales                                                             | Leased (5)  | 700                      |
| Eldorado Hills, California           |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 12150 Tributary Point Dr., Suite 160 | Mortgage Sales                                                             | Leased (6)  | 2,400                    |
| Gold River, California               |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 16835 West Bernardo Drive, Suite 150 | Mortgage Sales                                                             | Leased (7)  | 2,500                    |
| San Diego, California                |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 27451 Tourney Road                   | Mortgage Sales                                                             | Leased (8)  | 1,200                    |
| Santa Clarita, California            |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 27433 Tourney Road, Suite #220       | Mortgage Sales                                                             | Leased (9)  | 3,100                    |
| Santa Clarita, California            |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 550 West Cienega, Suite G&H      | Mortgage Sales                                                             | Leased (10) | 2,600                    |
| San Dimas, California                |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 8950 Dr. MLK St. N., Suite 103       | Mortgage Sales                                                             | Leased (11) | 3,500                    |
| St. Petersburg, Florida              |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 970 No. Kalaheo Ave, Suite A-214     | Mortgage Sales                                                             | Leased (12) | 700                      |
| Kailua, Hawaii                       |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 45 South Park Blvd., Suite 45        | Mortgage Sales                                                             | Leased (13) | 4,800                    |
| Greenwood, Indiana                   |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 6900 College Blvd., Suite 950        | Mortgage Sales                                                             | Leased (14) | 2,800                    |
| Overland Park, Kansas                |                                                                       |        |                     |
|                                 |                                                                       |        |                     |
| 150 A Andover Street                 | Mortgage Sales                                                             | Leased (15) | 2,100                    |
| Danvers, Massachusetts               |                                                                       |        |                     |

----

| Location                                  |         Function | OwnedLeased | ApproximateSquareFootage |
|-------------------------------------------|----------------------------------------------------------|-------------|--------------------------|
| 111 West Port Plaza, Suite 600            | Mortgage Sales                                           | Leased (16) | 300                      |
| St. Louis, Missouri                       |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 999 Southwest Disk Drive, Suite 104       | Mortgage Sales                                           | Leased (17) | 1,800                    |
| Bend, Oregon                              |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 4915 SW Griffith Drive                    | Mortgage Sales                                           | Leased (18) | 2,600                    |
| Portland, Oregon                          |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 5000 Plaza on the Lake Drive, Suite 250   | Mortgage Sales                                           | Leased (19) | 9,500                    |
| Austin, Texas                             |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 6805 Capitol of Texas Highway, Suite 315  | Mortgage Sales                                           | Leased (20) | 2,300                    |
| Austin, Texas 78731                       |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 12201 Merit Drive, Suite 400              | Mortgage Sales                                           | Leased (21) | 4,600                    |
| Dallas, Texas                             |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 5353 W. Sam Houston Parkway N., Suite 170 | Mortgage Sales                                           | Leased (22) | 5,400                    |
| Houston, Texas                            |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 800 E. Campbell Road                      | Mortgage Sales                                           | Leased (23) | 2,300                    |
| Richardson, Texas                         |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 613 Northwest Loop 410, Suite 685         | Mortgage Sales                                           | Leased (24) | 1,170                    |
| San Antonio, Texas                        |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 6965 South Union Park                     | Mortgage Sales                                           | Leased (25) | 12,300                   |
| Suites 200, 470 and 480                   |                                                     |        |                     |
| Midvale, Utah                             |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 9815 S. Monroe Street                     | Mortgage Sales                                           | Leased (26) | 2,800                    |
| Sandy, Utah                               |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 5247 Greenpine Drive                      | Insurance Operations                                     | Owned (27)  | 13,400                   |
| Murray, Utah                              |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 5251 Green Street, Suite 350              | Insurance Operations                                     | Owned (28)  | 30,000                   |
| Salt Lake City, Utah                      |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 6740 South 1300 East, Suite 100           | Mortgage Sales                                           | Leased (29) | 3,200                    |
| Salt Lake City, Utah                      |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 970 East Murray-Holladay Rd., Suite 603   | Mortgage Sales                                           | Leased (30) | 6,400                    |
| Salt Lake City, Utah                      |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 5525 South 900 East, Suite 210            | Mortgage Sales                                           | Leased (31) | 2,000                    |
| Salt Lake City, Utah                      |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 6584 North Creekside Lane, Suite 150      | Mortgage Sales                                           | Leased (32) | 200                      |
| Park City, Utah                           |                                                     |        |                     |
|                                      |                                                     |        |                     |
| 1244 North Main Street, Suite 203         | Mortgage Sales                                           | Leased (33) | 1,200                    |
| Tooele, Utah                              |                                                     |        |                     |

----

| (1)  | The Company leases an additional 11,400 square feet of the facility to unrelated third parties for approximately $269,000 per year, under leases expiring at various dates after 2010.           |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | The building is located on 104 undeveloped acres.                                                                                                                                                |
| (3)  | The Company leases this facility for $26,400 per year. The lease expires in June 2014.                                                                                                           |
| (4)  | The Company leases this facility for $44,300 per year. The lease expires in May 2015.                                                                                                            |
| (5)  | The Company leases this facility for $27,000 per year. The lease expires in July 2011.                                                                                                           |
| (6)  | The Company leases this facility for $49,400 per year. The lease expires in June 2012.                                                                                                           |
| (7)  | The Company leases this facility for $70,500 per year. The lease expires in October 2011.                                                                                                        |
| (8)  | The Company leases this facility for $37,900 per year. The lease expires in April 2012.                                                                                                          |
| (9)  | The Company leases this facility for $106,600 per year. The lease expires in February 2011.                                                                                                      |
| (10) | The Company leases this facility for $33,000 per year. The lease expires in February 2011.                                                                                                       |
| (11) | The Company leases this facility for $69,400 per year. The lease expires in March 2011.                                                                                                          |
| (12) | The Company leases this facility for $18,500 per year. The lease expires in September 2012.                                                                                                      |
| (13) | The Company leases this facility for $69,700 per year, but subleases approximately half for $30,000 per year. The lease expires in March 2012.                                                   |
| (14) | The Company leases this facility for $55,100 per year. The lease expires in January 2013.                                                                                                        |
| (15) | The Company leases this facility for $28,900 per year. The lease expires in May 2013.                                                                                                            |
| (16) | The Company leases this facility for $7,600 per year. The lease expires in August 2011.                                                                                                          |
| (17) | The Company leases this facility for $42,100 per year. The lease expires in May 2012.                                                                                                            |
| (18) | The Company leases this facility for $41,600 per year. The lease expires in May 2012.                                                                                                            |
| (19) | The Company leases this facility for $12,800 per year. The lease expires in July 2011.                                                                                                           |
| (20) | The Company leases this facility for $51,300 per year. The lease expires in September 2011.                                                                                                      |
| (21) | The Company leases this facility for $44,700 per year. The lease expires in June 2012.                                                                                                           |
| (22) | The Company leases this facility for $64,300 per year. The lease expires in April 2013.                                                                                                          |
| (23) | The Company leases this facility for $54,000 per year, with a month-to-month lease.                                                                                                              |
| (24) | The Company leases this facility for $48,500 per year. The lease expires in October 2012.                                                                                                        |
| (25) | The Company leases this facility for $272,200 per year. The lease expires in July 2015.                                                                                                          |
| (26) | The Company leases this facility for $60,000 per year. The lease expires in October 2015.                                                                                                        |
| (27) | The Company leases an additional 122,300 square feet of the facility to unrelated third parties for approximately $680,000 per year, under leases expiring at various dates after December 2010. |
| (28) | The Company leases the facility to unrelated third parties for approximately $188,000 per year, under leases expiring at various dates after December 2010.                                      |
| (29) | The Company leases this facility for $79,800 per year. The lease expires in April 2012.                                                                                                          |
| (30) | The Company leases this facility for $41,500 per year, with a month-to-month lease.                                                                                                              |
| (31) | The Company leases this facility for $37,000 per year, with a month-to-month lease.                                                                                                              |
| (32) | The Company leases this facility for $4,800 per year, with a month-to-month lease.                                                                                                               |
| (33) | The Company leases this facility for $26,400 per year. The lease expires in October 2013.                                                                                                        |

----

|                                         |                                                                  |          |                  | Net Saleable Acreage |
|----------------------------------------------|-----------------------------------------------------------------------|---------------|-----------------------|----------------------|
| Name of Cemetery                             |            Location | Date Acquired | Developed Acreage (1) | Total Acreage (1)    | Acres Sold as Cemetery Spaces (2) | Total Available Acreage (1) |
| Memorial Estates, Inc.                       |                                                                  |          |                  |                 |   |
| Lakeview Cemetery                            | 1640 East Lakeview DriveBountiful, Utah                               | 1973          | 7                     | 40                   | 6 | 34 |
|                                         |                                                                  |          |                  |                 |   |   |
| Mountain View Cemetery                       | 3115 East 7800 SouthSalt Lake City, Utah                              | 1973          | 15                    | 54                   | 14 | 40 |
|                                         |                                                                  |          |                  |                 |   |   |
| Redwood Cemetery (4)                         | 6500 South Redwood RoadWest Jordan, Utah                              | 1973          | 27                    | 78                   | 28 | 50 |
|                                         |                                                                  |          |                  |                 |   |   |
| Cottonwood Mortuary, Inc.                    |                                                                  |          |                  |                 |   |
| Deseret Memorial Inc.Lake Hills Cemetery (3) | 10055 South State StreetSandy, Utah                                   | 1991          | 9                     | 41                   | 4 | 37 |
|                                         |                                                                  |          |                  |                 |   |   |
| Holladay Memorial Park (3)(4)                | 4900 South Memory LaneHolladay, Utah                                  | 1991          | 5                     | 14                   | 4 | 10 |
|                                         |                                                                  |          |                  |                 |   |   |
| California Memorial Estates                  |                                                                  |          |                  |                 |   |
| Singing Hills Memorial Park                  | 2800 Dehesa RoadEl Cajon, California                                  | 1995          | 8                     | 35                   | 4 | 31 |

|   | (1) | The acreage represents estimates of acres that are based upon survey reports, title reports, appraisal reports or the Company’s inspection of the cemeteries. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Includes spaces sold for cash and installment contract sales. |
|--------|-----|---------------------------------------------------------------|

|   | (3) | As of December 31, 2010, there were mortgages of approximately $998,000 collateralized by the property and facilities at Deseret Mortuary, Cottonwood Mortuary, Holladay Memorial Park, and Lake Hills Cemetery. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | These cemeteries include two granite mausoleums. |
|--------|-----|--------------------------------------------------|

----

|                         |                         | Date     | Viewing |      | Square  |
|------------------------------|------------------------------|----------|---------|-----------|---------|
| Name of Mortuary             | Location                     | Acquired | Room(s) | Chapel(s) | Footage |
| Memorial Mortuary            | 5850 South 900 East          |     |    |      |    |
|                         | Murray, Utah                 | 1973     | 3       | 1         | 20,000  |
|                         |                         |     |    |      |    |
| Memorial Estates, Inc.:      |                         |     |    |      |    |
| Redwood Mortuary(3)          | 6500 South Redwood Rd.       |     |    |      |    |
|                         | West Jordan, Utah            | 1973     | 2       | 1         | 10,000  |
|                         |                         |     |    |      |    |
| Mountain View Mortuary(3)    | 3115 East 7800 South         |     |    |      |    |
|                         | Salt Lake City, Utah         | 1973     | 2       | 1         | 16,000  |
|                         |                         |     |    |      |    |
| Lakeview Mortuary(3)         | 1640 East Lakeview Dr.       |     |    |      |    |
|                         | Bountiful, Utah              | 1973     | 0       | 1         | 5,500   |
|                         |                         |     |    |      |    |
| Paradise Chapel Funeral Home | 3934 East Indian School Road |     |    |      |    |
|                         | Phoenix, Arizona             | 1989     | 2       | 1         | 9,800   |
|                         |                         |     |    |      |    |
| Deseret Memorial, Inc.:      | 36 East 700 South            |     |    |      |    |
| Deseret Mortuary(1)          | Salt Lake City, Utah         | 1991     | 2       | 2         | 36,300  |
|                         |                         |     |    |      |    |
| Lakehills Mortuary(3)        | 10055 South State St.        |     |    |      |    |
|                         | Sandy, Utah                  | 1991     | 2       | 1         | 18,000  |
|                         |                         |     |    |      |    |
| Cottonwood Mortuary(1)(3)    | 4670 South Highland Dr.      |     |    |      |    |
|                         | Holladay, Utah               | 1991     | 2       | 1         | 14,500  |
|                         |                         |     |    |      |    |
| Greer-Wilson Funeral Home    | 5921 West Thomas Road        |     |    |      |    |
|                         | Phoenix, Arizona             | 1995     | 2       | 2         | 25,000  |
|                         |                         |     |    |      |    |
| Crystal Rose Funeral Home(2) | 9155 W. VanBuren             |     |    |      |    |
|                         | Tolleson, Arizona            | 1997     | 0       | 1         | 9,000   |

|   | (1) | As of December 31, 2010, there were mortgages of approximately $998,000 collateralized by the property and facilities at Deseret Mortuary, Cottonwood Mortuary, Holladay Memorial Park and Lake Hills Cemetery. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | As of December 31, 2010, there was a mortgage of approximately $68,000, collateralized by the property and facilities of Crystal Rose Funeral Home. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | These funeral homes also provide burial niches at their respective locations. |
|--------|-----|-------------------------------------------------------------------------------|

----

|                                   |   | Price Range (1) |   |
|----------------------------------------|--------|-----------------|--------|
|                                   |   | High            |   |   | Low |   |
| Period (Calendar Year)                 |   |            |   |   |   |   |
| 2009                                   |   |            |   |   |   |   |
| First Quarter                          |   | $               | 2.12   |   |   | $ | 1.19 |   |
| Second Quarter                         |   | $               | 3.51   |   |   | $ | 1.14 |   |
| Third Quarter                          |   | $               | 3.76   |   |   | $ | 2.16 |   |
| Fourth Quarter                         |   | $               | 3.79   |   |   | $ | 2.86 |   |
|                                   |   |            |   |   |   |   |   |   |
| 2010                                   |   |            |   |   |   |   |   |   |
| First Quarter                          |   | $               | 3.75   |   |   | $ | 3.00 |   |
| Second Quarter                         |   | $               | 3.25   |   |   | $ | 1.94 |   |
| Third Quarter                          |   | $               | 2.13   |   |   | $ | 1.73 |   |
| Fourth Quarter                         |   | $               | 2.03   |   |   | $ | 1.72 |   |
|                                   |   |            |   |   |   |   |   |   |
| 2011                                   |   |            |   |   |   |   |   |   |
| First Quarter (through March 29, 2011) |   | $               | 2.13   |   |   | $ | 1.65 |   |

----

|                | 12/31/05 | 12/31/06 | 12/31/07 | 12/31/08 | 12/31/09 | 12/31/10 |
|---------------------|----------|----------|----------|----------|----------|----------|
| SNFC                | 100      | 152      | 118      | 53       | 115      | 67       |
| S & P 500       | 100      | 114      | 118      | 72       | 89       | 101      |
| S & P Insurance | 100      | 109      | 101      | 41       | 46       | 52       |

----

|                                                             |   | Year Ended December 31, |        |
|------------------------------------------------------------------|--------|-------------------------|-------------|
|                                                             |   | 2010                    |        |   | 2009 |   |   | 2008(1) |   |   | 2007(2) |   |   | 2006 |   |
| Revenue                                                          |   |                    |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Premiums                                                         |   | $                       | 38,528,000  |   |   | $ | 38,413,000 |   |   | $ | 35,981,000 |   |   | $ | 32,263,000 |   |   | $ | 30,776,000 |   |
| Net investment income                                            |   |                    | 17,794,000  |   |   |   | 19,329,000 |   |   |   | 28,047,000 |   |   |   | 33,227,000 |   |   |   | 24,472,000 |   |
| Net mortuary and cemetery sales                                  |   |                    | 11,520,000  |   |   |   | 11,974,000 |   |   |   | 12,726,000 |   |   |   | 13,189,000 |   |   |   | 12,123,000 |   |
| Realized gains on investments                                    |   |                    | 1,615,000   |   |   |   | 1,223,000 |   |   |   | 1,018,000 |   |   |   | 1,008,000 |   |   |   | 891,000 |   |
| Other than temporary impairments                                 |   |                    | (674,000    | ) |   |   | (326,000 | ) |   |   | (2,752,000 | ) |   |   | - |   |   |   | - |   |
| Mortgage fee income                                              |   |                    | 98,165,000  |   |   |   | 144,861,000 |   |   |   | 143,413,000 |   |   |   | 130,472,000 |   |   |   | 85,113,000 |   |
| Other                                                            |   |                    | 1,582,000   |   |   |   | 1,415,000 |   |   |   | 1,015,000 |   |   |   | 860,000 |   |   |   | 381,000 |   |
| Total revenue                                                    |   |                    | 168,530,000 |   |   |   | 216,889,000 |   |   |   | 219,448,000 |   |   |   | 211,019,000 |   |   |   | 153,756,000 |   |
|                                                             |   |                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenses                                                         |   |                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Policyholder benefits                                            |   |                    | 36,452,000  |   |   |   | 35,920,000 |   |   |   | 32,904,000 |   |   |   | 29,742,000 |   |   |   | 27,319,000 |   |
| Amortization of deferred policy acquisition costs                |   |                    | 5,945,000   |   |   |   | 7,161,000 |   |   |   | 6,010,000 |   |   |   | 5,571,000 |   |   |   | 4,125,000 |   |
| Selling, general and administrative expenses                     |   |                    | 122,217,000 |   |   |   | 161,785,000 |   |   |   | 169,917,000 |   |   |   | 156,775,000 |   |   |   | 106,954,000 |   |
| Interest expense                                                 |   |                    | 2,779,000   |   |   |   | 3,326,000 |   |   |   | 7,449,000 |   |   |   | 13,271,000 |   |   |   | 6,141,000 |   |
| Cost of goods and services of the mortuaries and cemeteries |   |                    | 2,226,000   |   |   |   | 2,349,000 |   |   |   | 2,437,000 |   |   |   | 2,537,000 |   |   |   | 2,322,000 |   |
| Total benefits and expenses                                      |   |                    | 169,619,000 |   |   |   | 210,541,000 |   |   |   | 218,717,000 |   |   |   | 207,896,000 |   |   |   | 146,861,000 |   |
| Income before income tax expense                                 |   |                    | (1,089,000  | ) |   |   | 6,348,000 |   |   |   | 731,000 |   |   |   | 3,123,000 |   |   |   | 6,895,000 |   |
| Income tax expense                                               |   |                    | 658,000     |   |   |   | (2,574,000 | ) |   |   | (156,000 | ) |   |   | (858,000 | ) |   |   | (1,771,000 | ) |
| Net earnings (loss)                                              |   | $                       | (431,000    | ) |   | $ | 3,774,000 |   |   | $ | 575,000 |   |   | $ | 2,265,000 |   |   | $ | 5,124,000 |   |
|                                                             |   |                    |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) per common share (3)                         |   | $                       | (0.05       | ) |   | $ | 0.43 |   |   | $ | 0.06 |   |   | $ | 0.27 |   |   | $ | 0.62 |   |
| Weighted average outstanding common shares (3)                   |   |                    | 8,717,000   |   |   |   | 8,697,000 |   |   |   | 9,103,000 |   |   |   | 8,470,000 |   |   |   | 8,268,000 |   |
| Net earnings (loss) per common share-assuming dilution (3)       |   | $                       | (0.05       | ) |   | $ | 0.43 |   |   | $ | 0.06 |   |   | $ | 0.26 |   |   | $ | 0.61 |   |
| Weighted average outstanding common shares-assuming dilution (3) |   |                    | 8,717,000   |   |   |   | 8,700,000 |   |   |   | 9,103,000 |   |   |   | 8,669,000 |   |   |   | 8,443,000 |   |

----

|                                             |   | December 31, |        |
|--------------------------------------------------|--------|--------------|-------------|
|                                             |   | 2010         |        |   | 2009 |   |   | 2008(1) |   |   | 2007(2) |   |   | 2006 |   |
| Assets                                           |   |         |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments and restricted assets                |   | $            | 278,949,000 |   |   | $ | 302,915,000 |   |   | $ | 309,142,000 |   |   | $ | 258,242,000 |   |   | $ | 223,515,000 |   |
| Cash                                             |   |         | 39,557,000  |   |   |   | 39,464,000 |   |   |   | 19,914,000 |   |   |   | 5,203,000 |   |   |   | 10,377,000 |   |
| Receivables                                      |   |         | 71,054,000  |   |   |   | 50,143,000 |   |   |   | 33,021,000 |   |   |   | 80,445,000 |   |   |   | 74,695,000 |   |
| Other assets                                     |   |         | 76,075,000  |   |   |   | 78,055,000 |   |   |   | 79,728,000 |   |   |   | 74,273,000 |   |   |   | 68,808,000 |   |
| Total assets                                     |   | $            | 465,635,000 |   |   | $ | 470,577,000 |   |   | $ | 441,805,000 |   |   | $ | 418,163,000 |   |   | $ | 377,395,000 |   |
|                                             |   |         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities                                      |   |         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Policyholder benefits                            |   | $            | 350,186,000 |   |   | $ | 341,124,000 |   |   | $ | 330,533,000 |   |   | $ | 301,064,000 |   |   | $ | 272,923,000 |   |
| Notes & contracts payable                    |   |         | 7,066,000   |   |   |   | 8,940,000 |   |   |   | 6,640,000 |   |   |   | 13,372,000 |   |   |   | 7,671,000 |   |
| Cemetery & mortuary liabilities              |   |         | 13,192,000  |   |   |   | 13,382,000 |   |   |   | 13,467,000 |   |   |   | 12,643,000 |   |   |   | 11,534,000 |   |
| Cemetery perpetual care obligation               |   |         | 2,854,000   |   |   |   | 2,756,000 |   |   |   | 2,648,000 |   |   |   | 2,474,000 |   |   |   | 2,278,000 |   |
| Other liabilities                                |   |         | 32,408,000  |   |   |   | 44,570,000 |   |   |   | 34,605,000 |   |   |   | 32,826,000 |   |   |   | 30,018,000 |   |
| Total liabilities                                |   |         | 405,706,000 |   |   |   | 410,772,000 |   |   |   | 387,893,000 |   |   |   | 362,379,000 |   |   |   | 324,424,000 |   |
|                                             |   |         |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’ equity                       |   |         | 59,929,000  |   |   |   | 59,805,000 |   |   |   | 53,912,000 |   |   |   | 55,784,000 |   |   |   | 52,971,000 |   |
| Total liabilities and stockholders’ equity |   | $            | 465,635,000 |   |   | $ | 470,577,000 |   |   | $ | 441,805,000 |   |   | $ | 418,163,000 |   |   | $ | 377,395,000 |   |

| (1) | Includes the purchase of Southern Security Life Insurance Company, effective December 18, 2008. |
|-----|-------------------------------------------------------------------------------------------------|

| (2) | Includes the purchase of C & J Financial on July 16, 2007 and the purchase of Capital Reserve Life Insurance Company on December 17, 2007. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Earnings per share amounts have been adjusted retroactively for the effect of annual stock dividends. |
|-----|-------------------------------------------------------------------------------------------------------|

----

|                                  |   | Years ended December 31(in thousands of dollars) |   |
|---------------------------------------|--------|--------------------------------------------------|--------|
|                                  |   | 2010                                             |   |   | 2009 |   |   | 2010 vs 2009 % Increase (Decrease) |   |   | 2008 |   |   | 2009 vs 2008 % Increase (Decrease) |   |
| Revenues from external customers      |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from loan originations         |   | $                                                | 79,272 |   |   | $ | 107,438 |   |   |   | (26%) |   |   | $ | 127,260 |   |   |   | (16%) |   |
| Secondary gains from investors        |   |                                             | 18,892 |   |   |   | 37,422 |   |   |   | (50%) |   |   |   | 16,152 |   |   |   | 132%  |   |
| Total                                 |   | $                                                | 98,164 |   |   | $ | 144,860 |   |   |   | (32%) |   |   | $ | 143,412 |   |   |   | 1%  |   |
| Earnings (Losses) before income taxes |   | $                                                | (1,964 | ) |   | $ | 6,910 |   |   |   | (128%) |   |   | $ | 2,796 |   |   |   | 147% |   |

|   | · | Failure to deliver original documents specified by the investor. |
|--------|--------|------------------------------------------------------------------|

|   | · | The existence of misrepresentation or fraud in the origination of the loan. |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | The loan becomes delinquent due to nonpayment during the first several months after it is sold. |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | Early pay-off of a loan, as defined by the agreements. |
|--------|--------|--------------------------------------------------------|

|   | · | Excessive time to settle a loan. |
|--------|--------|----------------------------------|

|   | · | Investor declines purchase. |
|--------|--------|-----------------------------|

|   | · | Discontinued product and expired commitment. |
|--------|--------|----------------------------------------------|

----

|   | · | Research reasons for rejection. |
|--------|--------|---------------------------------|

|   | · | Provide additional documents. |
|--------|--------|-------------------------------|

|   | · | Request investor exceptions. |
|--------|--------|------------------------------|

|   | · | Appeal rejection decision to purchase committee. |
|--------|--------|--------------------------------------------------|

|   | · | Commit to secondary investors. |
|--------|--------|--------------------------------|

|   | · | For loans that have an active market, the Company uses the market price on the repurchased date. |
|--------|--------|--------------------------------------------------------------------------------------------------|

|   | · | For loans where there is no market but there is a similar product, the Company uses the market value for the similar product on the repurchased date. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | For loans where no active market exists on the repurchased date, the Company determines that the unpaid principal balance best approximates the market value on the repurchased date, after considering the fair value of the underlying real estate collateral and estimated future cash flows. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

----

----

|                             |   | Years ended December 31(in thousands of dollars) |   |
|----------------------------------|--------|--------------------------------------------------|--------|
|                             |   | 2010                                             |   |   | 2009 |   |   | 2010 vs 2009 % Increase (Decrease) |   |   | 2008 |   |   | 2009 vs 2008 % Increase (Decrease) |   |
| Revenues from external customers |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Insurance premiums               |   | $                                                | 38,528 |   |   | $ | 38,413 |   |   |   | 0%  |   |   | $ | 35,981 |   |   |   | 7%  |   |
| Net investment income            |   |                                             | 14,738 |   |   |   | 15,869 |   |   |   | (7%) |   |   |   | 16,744 |   |   |   | (5%) |   |
| Other                            |   |                                             | 2,008  |   |   |   | 1,676 |   |   |   | 20%  |   |   |   | (1,256 | ) |   |   | (233%) |   |
| Total                            |   | $                                                | 55,274 |   |   | $ | 55,958 |   |   |   | (1%) |   |   | $ | 51,469 |   |   |   | 9%  |   |
| Intersegment revenue             |   | $                                                | 6,817  |   |   | $ | 5,041 |   |   |   | 35%  |   |   | $ | 4,819 |   |   |   | 5%  |   |
| Earnings before income taxes     |   | $                                                | 1,860  |   |   | $ | (434 | ) |   |   | 529%  |   |   | $ | (1,941 | ) |   |   | (78%) |   |

----

|                                  |   | Years ended December 31(in thousands of dollars) |   |
|---------------------------------------|--------|--------------------------------------------------|--------|
|                                  |   | 2010                                             |   |   | 2009 |   |   | 2010 vs 2009 % Increase (Decrease) |   |   | 2008 |   |   | 2009 vs 2008 % Increase (Decrease) |   |
| Revenues from external customers      |   |                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortuary revenues                     |   | $                                                | 6,211  |   |   | $ | 6,368 |   |   |   | (2%) |   |   | $ | 6,481 |   |   |   | (2%) |   |
| Cemetery revenues                     |   |                                             | 5,309  |   |   |   | 5,605 |   |   |   | (5%) |   |   |   | 6,245 |   |   |   | (10%) |   |
| Other                                 |   |                                             | 294    |   |   |   | 247 |   |   |   | 47%  |   |   |   | 691 |   |   |   | (64%) |   |
| Total                                 |   | $                                                | 11,814 |   |   | $ | 12,220 |   |   |   | 1%  |   |   | $ | 13,417 |   |   |   | (9%) |   |
| Earnings (Losses) before income taxes |   | $                                                | (986   | ) |   | $ | (128 | ) |   |   | 670%  |   |   | $ | (124 | ) |   |   | 3%  |   |

----

----

----

----

----

----

----

----

----

----

|                     |   |   |        |   | Principal |   |       | Principal |      |   | Principal  |       |
|--------------------------|--------|--------|-------------|--------|-----------|--------|------------|-----------|-----------|--------|------------|------------|
|                     |   |   |        |   | Amounts   |   |       | Amounts   |      |   | Amounts    |       |
|                     |   |   |        |   | Due in    |   |       | Due in    |      |   | Due        |       |
|                     |   | Total  |        |   | 2011      |   |       |      | 2012-2015 |   |       | Thereafter |   |
| Residential              |   | $      | 60,285,273  |   |      | $      | 1,210,596  |      |      | $      | 8,702,114  |       |   | $ | 50,372,563 |   |
| Residential Construction |   |   | 18,436,495  |   |      |   | 18,436,495 |      |      |   | -          |       |   |   | - |   |
| Commercial               |   |   | 24,502,781  |   |      |   | 13,940,886 |      |      |   | 7,217,681  |       |   |   | 3,344,214 |   |
| Total                    |   | $      | 103,224,549 |   |      | $      | 33,587,977 |      |      | $      | 15,919,795 |       |   | $ | 53,716,777 |   |

|                                  |   | -200 bps |   |   | -100 bps |   |   | +100 bps |   |   | +200 bps |   |
|---------------------------------------|--------|----------|--------|--------|----------|--------|--------|----------|--------|--------|----------|--------|
| Change in Market Value (in thousands) |   | $        | 17,118 |   |     | $      | 8,522  |     |   | $      | (10,967  | )      |   | $ | (20,061 | ) |

----

|                            |   | Less than1 year |      |   | 1-3 years |   |      | 4-5 years |   |   | over5 years |   |   | Total  |    |
|---------------------------------|--------|-----------------|-----------|--------|-----------|--------|-----------|-----------|--------|--------|-------------|--------|--------|--------|---------|
| Non-cancelable operating leases |   | $               | 1,042,612 |   |      | $      | 1,200,572 |      |   | $      | 102,776     |   |   | $      | -       |   |   | $ | 2,345,960 |   |
| Notes and contracts payable     |   |            | 1,777,967 |   |      |   | 4,553,630 |      |   |   | 403,771     |   |   |   | 330,607 |   |   |   | 7,065,975 |   |
|                            |   | $               | 2,820,579 |   |      | $      | 5,754,202 |      |   | $      | 506,547     |   |   | $      | 330,607 |   |   | $ | 9,411,935 |   |

----

----

|                           |                                                                                                       | Page No.  |
|--------------------------------|------------------------------------------------------------------------------------------------------------|-----------|
| Financial Statements:          |                                                                                                       |
|                           |                                                                                                       |      |
|                           | Report of Independent Registered Public Accounting Firm                                                    | 42        |
|                           |                                                                                                       |      |
|                           | Consolidated Balance Sheets, December 31, 2010 and 2009                                                    | 43        |
|                           |                                                                                                       |      |
|                           | Consolidated Statements of Earnings for the Years Ended December 31, 2010, 2009 and 2008                   | 45        |
|                           |                                                                                                       |      |
|                           | Consolidated Statements of Stockholders’ Equity for the Years Ended December 31, 2010, 2009 and 2008 |   46 |
|                           |                                                                                                       |      |
|                           | Consolidated Statements of Cash Flows for the Years Ended December 31, 2010, 2009 and 2008                 | 47        |
|                           |                                                                                                       |      |
|                           | Notes to Consolidated Financial Statements                                                                 | 49        |
|                           |                                                                                                       |      |
| Financial Statement Schedules: |                                                                                                       |
|                           |                                                                                                       |      |
|                           | II Condensed Financial Information of Registrant                                                           | 127       |
|                           |                                                                                                       |      |
|                           | IV Reinsurance                                                                                             | 133       |
|                           |                                                                                                       |      |
|                           | V Valuation and Qualifying Accounts                                                                        | 134       |

----

|   |  |
|--------|--|

|   | HANSEN, BARNETT & MAXWELL, P.C. |
|--------|-------------------------------------|

|  |  |
|--|--|

----

|                                                                                                                                                            |   | December 31, |        |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|
| Assets                                                                                                                                                          |   | 2010         |        |   | 2009 |   |
| Investments:                                                                                                                                                    |   |         |        |   |   |   |
| Fixed maturity securities, held to maturity, at amortized cost                                                                                                  |   | $            | 98,048,016  |   |   | $ | 115,832,300 |   |
| Fixed maturity securities, available for sale, at estimated fair value                                                                                          |   |         | -           |   |   |   | 1,149,523 |   |
| Equity securities, available for sale, at estimated fair value                                                                                                  |   |         | 6,784,643   |   |   |   | 5,786,614 |   |
| Mortgage loans on real estate and construction loans held for investment, net of allowances for losses of $7,070,442 and $6,808,803 for 2010 and 2009 |   |         | 96,154,107  |   |   |   | 103,290,076 |   |
| Real estate held for investment, net of accumulated depreciation of $3,849,695 and $3,515,527 for 2010 and 2009                                                 |   |         | 3,996,777   |   |   |   | 4,080,033 |   |
| Other real estate owned held for investment, net of accumulated depreciation of $1,090,532 and $423,746 for 2010 and 2009                                  |   |         | 44,422,829  |   |   |   | 38,979,999 |   |
| Other real estate owned held for sale                                                                                                                           |   |         | 5,086,400   |   |   |   | 3,841,800 |   |
| Policy, student and other loans net of allowance for doubtful accounts of $380,506 and $652,498 for 2010 and 2009                                               |   |         | 17,044,897  |   |   |   | 18,145,029 |   |
| Short-term investments                                                                                                                                          |   |         | 2,618,349   |   |   |   | 7,144,319 |   |
| Accrued investment income                                                                                                                                       |   |         | 1,726,854   |   |   |   | 2,072,495 |   |
| Total investments                                                                                                                                               |   |         | 275,882,872 |   |   |   | 300,322,188 |   |
| Cash and cash equivalents                                                                                                                                       |   |         | 39,556,503  |   |   |   | 39,463,803 |   |
| Mortgage loans sold to investors                                                                                                                                |   |         | 63,226,686  |   |   |   | 39,269,598 |   |
| Receivables, net                                                                                                                                                |   |         | 7,827,114   |   |   |   | 10,873,207 |   |
| Restricted assets of cemeteries and mortuaries                                                                                                                  |   |         | 3,066,379   |   |   |   | 2,593,413 |   |
| Cemetery perpetual care trust investments                                                                                                                       |   |         | 1,454,694   |   |   |   | 1,104,046 |   |
| Receivable from reinsurers                                                                                                                                      |   |         | 4,476,237   |   |   |   | 5,776,780 |   |
| Cemetery land and improvements                                                                                                                                  |   |         | 11,096,129  |   |   |   | 10,987,833 |   |
| Deferred policy and pre-need contract acquisition costs                                                                                                         |   |         | 35,767,101  |   |   |   | 34,087,951 |   |
| Property and equipment, net                                                                                                                                     |   |         | 11,111,059  |   |   |   | 11,994,284 |   |
| Value of business acquired                                                                                                                                      |   |         | 9,017,696   |   |   |   | 10,252,670 |   |
| Goodwill                                                                                                                                                        |   |         | 1,075,039   |   |   |   | 1,075,039 |   |
| Other                                                                                                                                                           |   |         | 2,077,396   |   |   |   | 2,776,086 |   |
| Total Assets                                                                                                                                                    |   | $            | 465,634,905 |   |   | $ | 470,576,898 |   |

----

|                                                      |   | December 31, |        |
|-----------------------------------------------------------|--------|--------------|-------------|
| Liabilities and Stockholders' Equity                      |   | 2010         |        |   | 2009 |   |
| Liabilities                                               |   |         |        |   |   |   |
| Future life, annuity, and other benefits                  |   | $            | 344,972,099 |   |   | $ | 336,343,433 |   |
| Unearned premium reserve                                  |   |         | 5,213,948   |   |   |   | 4,780,645 |   |
| Bank loans payable                                        |   |         | 6,866,438   |   |   |   | 8,656,245 |   |
| Notes and contracts payable                               |   |         | 199,537     |   |   |   | 283,744 |   |
| Deferred pre-need cemetery and mortuary contract revenues |   |         | 13,192,499  |   |   |   | 13,381,662 |   |
| Cemetery perpetual care obligation                        |   |         | 2,853,727   |   |   |   | 2,756,174 |   |
| Accounts payable                                          |   |         | 2,472,996   |   |   |   | 2,601,149 |   |
| Other liabilities and accrued expenses                    |   |         | 14,579,008  |   |   |   | 24,623,535 |   |
| Income taxes                                              |   |         | 15,356,185  |   |   |   | 17,344,869 |   |
| Total liabilities                                         |   |         | 405,706,437 |   |   |   | 410,771,456 |   |
| Commitments and Contingencies                             |   |         | --          |   |   |   | -- |   |
| Stockholders’ Equity                                |   |         |        |   |   |   |   |   |

| Common Stock:                                                                                                                                   |   |   |        |   |   |   |        |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------|--------|--------|--------|-------------|--------|
| Class A: common stock - $2.00 par value; 20,000,000 shares authorized; issued 9,178,945 shares in 2010 and 8,730,227 shares in 2009             |   |   | 18,357,890  |   |   |   | 17,460,454  |   |
| Class B: non-voting common stock - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding                                     |   |   | --          |   |   |   | --          |   |
| Class C: convertible common stock - $0.20 par value; 15,000,000 shares authorized; issued 9,660,152 shares in 2010 and 9,214,211 shares in 2009 |   |   | 1,932,031   |   |   |   | 1,842,842   |   |
| Additional paid-in capital                                                                                                                      |   |   | 19,689,993  |   |   |   | 19,191,606  |   |
| Accumulated other comprehensive income, net of taxes                                                                                            |   |   | 1,188,246   |   |   |   | 1,593,327   |   |
| Retained earnings                                                                                                                               |   |   | 21,907,579  |   |   |   | 23,178,944  |   |
| Treasury stock, at cost - 1,322,074 Class A shares and -0- Class C shares in 2010; 1,454,974 Class A shares and -0- Class C shares in 2009      |   |   | (3,147,271  | )      |   |   | (3,461,731  | )      |
| Total stockholders’ equity                                                                                                                |   |   | 59,928,468  |   |   |   | 59,805,442  |   |
| Total Liabilities and Stockholders’ Equity                                                                                                |   | $      | 465,634,905 |   |   | $      | 470,576,898 |   |

----

|                                                                                          |   | Years Ended December 31, |        |
|-----------------------------------------------------------------------------------------------|--------|--------------------------|-------------|
|                                                                                          |   | 2010                     |        |   | 2009 |   |   | 2008 |   |
| Revenues:                                                                                     |   |                     |        |   |   |   |   |   |   |
| Insurance premiums and other consideration                                                    |   | $                        | 38,528,437  |   |   | $ | 38,413,329 |   |   | $ | 35,981,297 |   |
| Net investment income                                                                         |   |                     | 17,794,086  |   |   |   | 19,328,900 |   |   |   | 28,047,162 |   |
| Net mortuary and cemetery sales                                                               |   |                     | 11,520,369  |   |   |   | 11,973,676 |   |   |   | 12,725,930 |   |
| Realized gains on investments and other assets                                                |   |                     | 1,615,418   |   |   |   | 1,223,312 |   |   |   | 1,018,189 |   |
| Other than temporary impairments                                                              |   |                     | (673,981    | ) |   |   | (326,000 | ) |   |   | (2,751,904 | ) |
| Mortgage fee income                                                                           |   |                     | 98,164,113  |   |   |   | 144,860,399 |   |   |   | 143,411,459 |   |
| Other                                                                                         |   |                     | 1,581,115   |   |   |   | 1,414,680 |   |   |   | 1,015,370 |   |
| Total revenues                                                                                |   |                     | 168,529,557 |   |   |   | 216,888,296 |   |   |   | 219,447,503 |   |
|                                                                                          |   |                     |        |   |   |   |   |   |   |   |   |   |
| Benefits and expenses:                                                                        |   |                     |        |   |   |   |   |   |   |   |   |   |
| Death benefits                                                                                |   |                     | 19,350,176  |   |   |   | 19,003,933 |   |   |   | 17,100,688 |   |
| Surrenders and other policy benefits                                                          |   |                     | 1,575,812   |   |   |   | 1,677,335 |   |   |   | 2,094,482 |   |
| Increase in future policy benefits                                                            |   |                     | 15,525,542  |   |   |   | 15,238,380 |   |   |   | 13,709,135 |   |
| Amortization of deferred policy and pre-need acquisition costs and value of business acquired |   |                     | 5,944,859   |   |   |   | 7,160,488 |   |   |   | 6,010,273 |   |
| Selling, general and administrative expenses:                                                 |   |                     |        |   |   |   |   |   |   |   |   |   |
| Commissions                                                                                   |   |                     | 58,439,664  |   |   |   | 79,509,946 |   |   |   | 98,962,941 |   |
| Salaries                                                                                      |   |                     | 26,406,153  |   |   |   | 27,351,618 |   |   |   | 25,438,793 |   |
| Provision for loan losses and loss reserve                                                    |   |                     | 5,404,645   |   |   |   | 19,547,162 |   |   |   | 10,552,074 |   |
| Costs related to funding mortgage loans                                                       |   |                     | 6,044,020   |   |   |   | 10,041,731 |   |   |   | 8,944,945 |   |
| Other                                                                                         |   |                     | 25,923,413  |   |   |   | 25,334,654 |   |   |   | 26,017,754 |   |
| Interest expense                                                                              |   |                     | 2,778,920   |   |   |   | 3,326,161 |   |   |   | 7,448,454 |   |
| Cost of goods and services sold – mortuaries and cemeteries                             |   |                     | 2,225,773   |   |   |   | 2,349,230 |   |   |   | 2,437,453 |   |
|                                                                                          |   |                     |        |   |   |   |   |   |   |   |   |   |
| Total benefits and expenses                                                                   |   |                     | 169,618,977 |   |   |   | 210,540,638 |   |   |   | 218,716,992 |   |
|                                                                                          |   |                     |        |   |   |   |   |   |   |   |   |   |
| Earnings (loss) before income taxes                                                           |   |                     | (1,089,420  | ) |   |   | 6,347,658 |   |   |   | 730,511 |   |
| Income tax benefit (expense)                                                                  |   |                     | 658,796     |   |   |   | (2,573,778 | ) |   |   | (155,658 | ) |
|                                                                                          |   |                     |        |   |   |   |   |   |   |   |   |   |
| Net earnings (loss)                                                                           |   | $                        | (430,624    | ) |   | $ | 3,773,880 |   |   | $ | 574,853 |   |
|                                                                                          |   |                     |        |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) per Class A equivalent common share (1)                                   |   | $                        | (0.05       | ) |   | $ | 0.43 |   |   | $ | 0.06 |   |
|                                                                                          |   |                     |        |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) per Class A equivalent common share - assuming dilution(1)                |   | $                        | (0.05       | ) |   | $ | 0.43 |   |   | $ | 0.06 |   |
|                                                                                          |   |                     |        |   |   |   |   |   |   |   |   |   |
| Weighted average Class A equivalent common shares outstanding (1)                             |   |                     | 8,716,921   |   |   |   | 8,697,222 |   |   |   | 9,103,118 |   |
|                                                                                          |   |                     |        |   |   |   |   |   |   |   |   |   |
| Weighted average Class A equivalent common shares outstanding - assuming dilution (1)         |   |                     | 8,716,921   |   |   |   | 8,699,590 |   |   |   | 9,103,118 |   |

----

|                                    |   | Class ACommonStock |       |   | Class CCommonStock |   |      | AdditionalPaid-inCapital |   |   | AccumulatedOtherComprehensiveIncome (Loss) |   |   | RetainedEarnings |       |   | TreasuryStock |   |       | Total  |   |
|-----------------------------------------|--------|--------------------|------------|--------|--------------------|--------|-----------|--------------------------|--------|--------|--------------------------------------------|--------|--------|------------------|------------|--------|---------------|--------|------------|--------|--------|
| Balance at January 1, 2008              |   | $                  | 15,770,458 |   |               | $      | 1,706,140 |                     |   | $      | 17,737,172                                 |   |   | $                | 1,596,791  |   |          | $      | 21,104,156 |   |   | $ | (2,130,565 | ) |   | $ | 55,784,152 |   |
|                                    |   |               |       |   |               |   |      |                     |   |   |                                       |   |   |             |       |   |          |   |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                   |   |               |       |   |               |   |      |                     |   |   |                                       |   |   |             |       |   |          |   |       |   |   |   |   |   |   |   |   |   |
| Net earnings                            |   |               | —    |   |               |   | —   |                     |   |   | —                                    |   |   |             | —    |   |          |   | 574,853    |   |   |   | — |   |   |   | 574,853 |   |
| Unrealized gains (losses)               |   |               | —    |   |               |   | —   |                     |   |   | —                                    |   |   |             | (3,162,279 | )      |          |   | —    |   |   |   | — |   |   |   | (3,162,279 | ) |
| Reclass of treasury stock               |   |               | —    |   |               |   | —   |                     |   |   | —                                    |   |   |             | 1,982,589  |   |          |   | —    |   |   |   | (1,982,589 | ) |   |   | — |   |
| Total comprehensive income              |   |               | —    |   |               |   | —   |                     |   |   | —                                    |   |   |             | —    |   |          |   | —    |   |   |   | — |   |   |   | (2,587,426 | ) |
| Grant of stock options                  |   |               | —    |   |               |   | —   |                     |   |   | 466,929                                    |   |   |             | —    |   |          |   | —    |   |   |   | — |   |   |   | 466,929 |   |
| Sale of treasury stock                  |   |               | —    |   |               |   | —   |                     |   |   | —                                    |   |   |             | —    |   |          |   | —    |   |   |   | 248,624 |   |   |   | 248,624 |   |
| Stock dividends                         |   |               | 789,354    |   |               |   | 84,727    |                     |   |   | (218,251                                   | )      |   |             | —    |   |          |   | (655,830   | )      |   |   | — |   |   |   | — |   |
| Conversion Class C to Class A           |   |               | 8,406      |   |               |   | (8,404    | )                        |   |   | (2                                         | )      |   |             | —    |   |          |   | —    |   |   |   | — |   |   |   | — |   |
| Balance at December 31,  2008 |   |               | 16,568,218 |   |               |   | 1,782,463 |                     |   |   | 17,985,848                                 |   |   |             | 417,101    |   |          |   | 21,023,179 |   |   |   | (3,864,530 | ) |   |   | 53,912,279 |   |
|                                    |   |               |       |   |               |   |      |                     |   |   |                                       |   |   |             |       |   |          |   |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                   |   |               |       |   |               |   |      |                     |   |   |                                       |   |   |             |       |   |          |   |       |   |   |   |   |   |   |   |   |   |
| Net earnings                            |   |               | —    |   |               |   | —   |                     |   |   | —                                    |   |   |             | —    |   |          |   | 3,773,880  |   |   |   | — |   |   |   | 3,773,880 |   |
| Unrealized gains (losses)               |   |               | —    |   |               |   | —   |                     |   |   | —                                    |   |   |             | 1,176,226  |   |          |   | —    |   |   |   | — |   |   |   | 1,176,226 |   |
| Total comprehensive income              |   |               | —    |   |               |   | —   |                     |   |   | —                                    |   |   |             | —    |   |          |   | —    |   |   |   | — |   |   |   | 4,950,106 |   |
| Grant of stock options                  |   |               | —    |   |               |   | —   |                     |   |   | 485,986                                    |   |   |             | —    |   |          |   | —    |   |   |   | — |   |   |   | 485,986 |   |
| Exercise stock options                  |   |               | 32,962     |   |               |   | —   |                     |   |   | (32,962                                    | )      |   |             | —    |   |          |   | —    |   |   |   | — |   |   |   | — |   |
| Sale of treasury stock                  |   |               | —    |   |               |   | —   |                     |   |   | 54,271                                     |   |   |             | —    |   |          |   | —    |   |   |   | 402,799 |   |   |   | 457,070 |   |
| Stock dividends                         |   |               | 831,736    |   |               |   | 87,755    |                     |   |   | 698,524                                    |   |   |             | —    |   |          |   | (1,618,015 | )      |   |   | — |   |   |   | — |   |
| Odd lot purchase                        |   |               | 160        |   |               |   | —   |                     |   |   | (60                                        | )      |   |             | —    |   |          |   | (100       | )      |   |   | — |   |   |   | — |   |
| Conversion Class C to Class A           |   |               | 27,377     |   |               |   | (27,376   | )                        |   |   | (1                                         | )      |   |             | —    |   |          |   | —    |   |   |   | — |   |   |   | — |   |
| Balance at December 31,  2009 |   |               | 17,460,454 |   |               |   | 1,842,842 |                     |   |   | 19,191,606                                 |   |   |             | 1,593,327  |   |          |   | 23,178,944 |   |   |   | (3,461,731 | ) |   |   | 59,805,442 |   |
|                                    |   |               |       |   |               |   |      |                     |   |   |                                       |   |   |             |       |   |          |   |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                   |   |               |       |   |               |   |      |                     |   |   |                                       |   |   |             |       |   |          |   |       |   |   |   |   |   |   |   |   |   |
| Net loss                                |   |               | —    |   |               |   | —   |                     |   |   | —                                    |   |   |             | —    |   |          |   | (430,624   | )      |   |   | — |   |   |   | (430,624 | ) |
| Unrealized gains (losses)               |   |               | —    |   |               |   | —   |                     |   |   | —                                    |   |   |             | (405,081   | )      |          |   | —    |   |   |   | — |   |   |   | (405,081 | ) |
| Total comprehensive income              |   |               | —    |   |               |   | —   |                     |   |   | —                                    |   |   |             | —    |   |          |   | —    |   |   |   | — |   |   |   | (835,705 | ) |
| Grant of stock options                  |   |               | —    |   |               |   | —   |                     |   |   | 520,457                                    |   |   |             | —    |   |          |   | —    |   |   |   | — |   |   |   | 520,457 |   |
| Exercise of stock options               |   |               | 20,348     |   |               |   | —   |                     |   |   | (20,348                                    | )      |   |             | —    |   |          |   | —    |   |   |   | — |   |   |   | — |   |
| Sale of treasury stock                  |   |               | —    |   |               |   | —   |                     |   |   | 123,814                                    |   |   |             | —    |   |          |   | —    |   |   |   | 314,460 |   |   |   | 438,274 |   |
| Stock dividends                         |   |               | 874,276    |   |               |   | 92,002    |                     |   |   | (125,537                                   | )      |   |             | —    |   |          |   | (840,741   | )      |   |   | — |   |   |   | — |   |
| Conversion Class C to Class A           |   |               | 2,812      |   |               |   | (2,813    | )                        |   |   | 1                                          |   |   |             | —    |   |          |   | —    |   |   |   | — |   |   |   | — |   |
| Balance at December 31, 2010            |   | $                  | 18,357,890 |   |               | $      | 1,932,031 |                     |   | $      | 19,689,993                                 |   |   | $                | 1,188,246  |   |          | $      | 21,907,579 |   |   | $ | (3,147,271 | ) |   | $ | 59,928,468 |   |

----

|                                                                                          |   | Years Ended December 31 |         |
|-----------------------------------------------------------------------------------------------|--------|-------------------------|--------------|
|                                                                                          |   | 2010                    |         |   | 2009 |   |   | 2008 |   |
| Cash flows from operating activities:                                                         |   |                    |         |   |   |   |   |   |   |
| Net earnings (loss)                                                                           |   | $                       | (430,624     | ) |   | $ | 3,773,880 |   |   | $ | 574,853 |   |
| Adjustments to reconcile net earnings to net cash provided by (used in) operating activities: |   |                    |         |   |   |   |   |   |   |   |   |   |
| Realized gains on investments and other assets                                                |   |                    | (1,615,418   | ) |   |   | (1,223,312 | ) |   |   | (1,018,189 | ) |
| Other than temporary impairments                                                              |   |                    | 673,981      |   |   |   | 326,000 |   |   |   | 2,751,904 |   |
| Depreciation                                                                                  |   |                    | 2,917,513    |   |   |   | 2,801,417 |   |   |   | 2,471,201 |   |
| Provision for losses on real estate accounts and loans receivable                             |   |                    | (198,062     | ) |   |   | 2,804,620 |   |   |   | 4,586,501 |   |
| Amortization of premiums and discounts                                                        |   |                    | (19,505      | ) |   |   | (740,124 | ) |   |   | (65,224 | ) |
| Provision for deferred and other income taxes                                                 |   |                    | (1,197,023   | ) |   |   | 1,570,989 |   |   |   | (59,230 | ) |
| Policy and pre-need acquisition costs deferred                                                |   |                    | (6,956,154   | ) |   |   | (7,754,706 | ) |   |   | (6,946,317 | ) |
| Policy and pre-need acquisition costs amortized                                               |   |                    | 5,225,032    |   |   |   | 6,035,882 |   |   |   | 5,110,519 |   |
| Value of business acquired amortized                                                          |   |                    | 719,827      |   |   |   | 1,124,606 |   |   |   | 899,754 |   |
| Change in assets and liabilities:                                                             |   |                    |         |   |   |   |   |   |   |   |   |   |
| Land and improvements held for sale                                                           |   |                    | (108,296     | ) |   |   | (361,537 | ) |   |   | (866,255 | ) |
| Future life and other benefits                                                                |   |                    | 16,843,261   |   |   |   | 15,423,587 |   |   |   | 9,508,769 |   |
| Receivables for mortgage loans held for sale                                                  |   |                    | (23,957,088  | ) |   |   | (19,383,604 | ) |   |   | 35,366,791 |   |
| Stock based compensation expense                                                              |   |                    | 520,457      |   |   |   | 485,986 |   |   |   | 466,929 |   |
| Benefit plans funded with treasury stock                                                      |   |                    | 438,274      |   |   |   | 457,070 |   |   |   | 248,624 |   |
| Other operating assets and liabilities                                                        |   |                    | (7,107,055   | ) |   |   | 11,831,350 |   |   |   | 4,088,477 |   |
| Net cash provided by (used in) operating activities                                           |   |                    | (14,250,880  | ) |   |   | 17,172,104 |   |   |   | 57,119,107 |   |
| Cash flows from investing activities:                                                         |   |                    |         |   |   |   |   |   |   |   |   |   |
| Securities held to maturity:                                                                  |   |                    |         |   |   |   |   |   |   |   |   |   |
| Purchase - fixed maturity securities                                                          |   |                    | (8,251,365   | ) |   |   | (12,897,225 | ) |   |   | (15,667,595 | ) |
| Calls and maturities - fixed maturity securities                                              |   |                    | 27,878,797   |   |   |   | 22,610,141 |   |   |   | 25,384,510 |   |
| Securities available for sale:                                                                |   |                    |         |   |   |   |   |   |   |   |   |   |
| Purchase - equity securities                                                                  |   |                    | (5,462,028   | ) |   |   | (5,640,738 | ) |   |   | (1,740,077 | ) |
| Sales - equity securities                                                                     |   |                    | 5,014,194    |   |   |   | 5,788,996 |   |   |   | 3,600,641 |   |
| Purchases of short-term investments                                                           |   |                    | (9,590,929   | ) |   |   | (20,784,977 | ) |   |   | (30,339,562 | ) |
| Sales of short-term investments                                                               |   |                    | 14,115,870   |   |   |   | 18,923,574 |   |   |   | 32,012,283 |   |
| Sales (purchases) of restricted assets                                                        |   |                    | (441,441     | ) |   |   | 1,552,830 |   |   |   | 1,528,071 |   |
| Change in assets for perpetual care trusts                                                    |   |                    | (282,605     | ) |   |   | (230,498 | ) |   |   | (291,870 | ) |
| Amount received for perpetual care trusts                                                     |   |                    | 97,553       |   |   |   | 108,190 |   |   |   | 174,226 |   |
| Mortgage, policy, and other loans made                                                        |   |                    | (102,328,203 | ) |   |   | (89,298,195 | ) |   |   | (121,760,048 | ) |
| Payments received for mortgage, policy, and other loans                                       |   |                    | 97,675,289   |   |   |   | 83,312,074 |   |   |   | 82,123,102 |   |
| Purchases of property and equipment                                                           |   |                    | (859,988     | ) |   |   | (736,210 | ) |   |   | (1,323,849 | ) |
| Disposal of property and equipment                                                            |   |                    | -            |   |   |   | 2,749 |   |   |   | 81,352 |   |
| Purchases of real estate                                                                      |   |                    | (1,813,784   | ) |   |   | (801,297 | ) |   |   | (379,738 | ) |
| Cash paid for purchase of subsidiaries, net of cash acquired                                  |   |                    | -            |   |   |   | - |   |   |   | (2,928,022 | ) |
| Sale of real estate                                                                           |   |                    | 6,424,961    |   |   |   | 1,965,740 |   |   |   | 1,438,796 |   |
| Net cash provided by (used in) investing activities                                           |   |                    | 22,176,321   |   |   |   | 3,875,154 |   |   |   | (28,087,780 | ) |

----

|                                                    |   | Years Ended December 31, |        |
|---------------------------------------------------------|--------|--------------------------|-------------|
|                                                    |   | 2010                     |        |   | 2009 |   |   | 2008 |   |
| Cash flows from financing activities:                   |   |                     |        |   |   |   |   |   |   |
| Annuity contract receipts                               |   | $                        | 8,428,798   |   |   | $ | 9,101,675 |   |   | $ | 10,578,845 |   |
| Annuity contract withdrawals                            |   |                     | (14,372,244 | ) |   |   | (13,920,526 | ) |   |   | (18,006,929 | ) |
| Repayment of bank loans and notes and contracts payable |   |                     | (1,889,295  | ) |   |   | (1,633,714 | ) |   |   | (1,840,193 | ) |
| Proceeds from borrowing on notes and contracts          |   |                     | -           |   |   |   | 4,955,000 |   |   |   | 1,698,000 |   |
| Change in line of credit borrowings                     |   |                     | -           |   |   |   | - |   |   |   | (6,750,000 | ) |
| Net cash used in financing activities                   |   |                     | (7,832,741  | ) |   |   | (1,497,565 | ) |   |   | (14,320,277 | ) |
| Net change in cash and cash equivalents                 |   |                     | 92,700      |   |   |   | 19,549,693 |   |   |   | 14,711,050 |   |
| Cash and cash equivalents at beginning of year          |   |                     | 39,463,803  |   |   |   | 19,914,110 |   |   |   | 5,203,060 |   |
| Cash and cash equivalents at end of year                |   | $                        | 39,556,503  |   |   | $ | 39,463,803 |   |   | $ | 19,914,110 |   |
|                                                    |   |                     |        |   |   |   |   |   |   |   |   |   |
| Non Cash Investing and Financing Activities             |   |                     |        |   |   |   |   |   |   |   |   |   |
| Mortgage loans foreclosed into real estate              |   | $                        | 12,985,041  |   |   | $ | 24,441,490 |   |   | $ | 16,449,451 |   |

|                              |   | Year endedDecember 31, 2008 |        |
|-----------------------------------|--------|-----------------------------|-------------|
|                              |   |                        |        |
| Fair value of assets acquired     |   | $                           | (26,193,020 | ) |
| Fair value of liabilities assumed |   |                        | 23,264,998  |   |
| Cash paid                         |   | $                           | (2,928,022  | ) |

----

|   |
|--------|

----

|   |
|--------|

----

|   |
|--------|

----

|   |
|--------|

----

|   |
|--------|

----

|   |
|--------|

|   | · | Failure to deliver original documents specified by the investor. |
|--------|--------|------------------------------------------------------------------|

|   | · | The existence of misrepresentation or fraud in the origination of the loan. |
|--------|--------|-----------------------------------------------------------------------------|

|   | · | The loan becomes delinquent due to nonpayment during the first several months after it is sold. |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | Early pay-off of a loan, as defined by the agreements. |
|--------|--------|--------------------------------------------------------|

|   | · | Excessive time to settle a loan. |
|--------|--------|----------------------------------|

|   | · | Investor declines purchase. |
|--------|--------|-----------------------------|

|   | · | Discontinued product and expired commitment. |
|--------|--------|----------------------------------------------|

|   | · | Research reasons for rejection. |
|--------|--------|---------------------------------|

|   | · | Provide additional documents. |
|--------|--------|-------------------------------|

|   | · | Request investor exceptions. |
|--------|--------|------------------------------|

|   | · | Appeal rejection decision to purchase committee. |
|--------|--------|--------------------------------------------------|

|   | · | Commit to secondary investors. |
|--------|--------|--------------------------------|

----

|   |
|--------|

|   | · | For loans that have an active market the Company uses the market price on the repurchased date. |
|--------|--------|-------------------------------------------------------------------------------------------------|

|   | · | For loans where there is no market but there is a similar product, the Company uses the market value for the similar product on the repurchased date. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | For loans where no active market exists on the repurchased date, the Company determines that the unpaid principal balance best approximates the market value on the repurchased date, after considering the fair value of the underlying real estate collateral and estimated future cash flows. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   |
|--------|

----

|   |
|--------|

----

|   |
|--------|

----

|   |
|--------|

| Investment in securities                           |   | $      | 1,200,865   |   |
|----------------------------------------------------|--------|--------|-------------|--------|
| Policy and mortgage loans                          |   |   | 1,050,028   |   |
| Cash                                               |   |   | 392,785     |   |
| Receivable from reinsurer - Security National Life |   |   | 22,235,131  |   |
| Other assets                                       |   |   | 49,369      |   |
| Deferred tax asset                                 |   |   | 298,418     |   |
| Value of business acquired                         |   |   | 227,573     |   |
| Total assets acquired                              |   |   | 25,454,169  |   |
| Future life, annuity and other benefits            |   |   | (22,789,846 | )      |
| Fair Value of Net Assets Acquired                  |   | $      | 2,664,323   |   |

|                                                               |   | For the Year EndedDecember 31,(unaudited) |        |
|--------------------------------------------------------------------|--------|-------------------------------------------|-------------|
|                                                               |   | 2008                                      |        |
| Total revenues                                                     |   | $                                         | 221,348,000 |   |
| Net earnings                                                       |   | $                                         | 717,000     |   |
| Net earnings per Class A equivalent common share                   |   | $                                         | 0.09        |   |
| Net earnings per Class A equivalent common share assuming dilution |   | $                                         | 0.09        |   |

----

|   |
|--------|

| 3) | Investments |
|----|-------------|

|                                                                  |   |      |       |   | Gross      |   |      | Gross      |   |   | Estimated  |   |
|-----------------------------------------------------------------------|--------|-----------|------------|--------|------------|--------|-----------|------------|--------|--------|------------|--------|
|                                                                  |   | Amortized |       |   | Unrealized |   |      | Unrealized |   |   | Fair       |   |
|                                                                  |   | Cost      |       |   | Gains      |   |      | Losses     |   |   | Value      |   |
| December 31, 2010:                                                    |   |      |       |   |       |   |      |       |   |   |       |   |
| Fixed maturity securities held to maturity carried at amortized cost: |   |      |       |   |       |   |      |       |   |   |       |   |
| Bonds:                                                                |   |      |       |   |       |   |      |       |   |   |       |   |
| U.S. Treasury securities and obligations of U.S Government agencies   |   | $         | 2,855,303  |   |       | $      | 325,935   |       |   | $      | -          |   |   | $ | 3,181,238 |   |
|                                                                  |   |      |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Obligations of states and political subdivisions                      |   |      | 1,773,904  |   |       |   | 122,565   |       |   |   | (18,574    | )      |   |   | 1,877,895 |   |
|                                                                  |   |      |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Corporate securities including public utilities                       |   |      | 85,354,245 |   |       |   | 6,626,582 |       |   |   | (716,007   | )      |   |   | 91,264,820 |   |
|                                                                  |   |      |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Mortgage-backed securities                                            |   |      | 6,469,942  |   |       |   | 239,719   |       |   |   | (654,959   | )      |   |   | 6,054,702 |   |
|                                                                  |   |      |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Redeemable preferred stock                                            |   |      | 1,594,622  |   |       |   | 27,158    |       |   |   | (32,171    | )      |   |   | 1,589,609 |   |
|                                                                  |   |      |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Total fixed maturity securities held to maturity                      |   | $         | 98,048,016 |   |       | $      | 7,341,959 |       |   | $      | (1,421,711 | )      |   | $ | 103,968,264 |   |

----

|                                                                                        |   |      |       |   | Gross      |   |    | Gross      |   |   | Estimated |   |
|---------------------------------------------------------------------------------------------|--------|-----------|------------|--------|------------|--------|---------|------------|--------|--------|-----------|--------|
|                                                                                        |   | Amortized |       |   | Unrealized |   |    | Unrealized |   |   | Fair      |   |
|                                                                                        |   | Cost      |       |   | Gains      |   |    | Losses     |   |   | Value     |   |
| December 31, 2010:                                                                          |   |      |       |   |       |   |    |       |   |   |      |   |
|                                                                                        |   |      |       |   |       |   |    |       |   |   |      |   |
| Equity securities available for sale at estimated fair value:                               |   |      |       |   |       |   |    |       |   |   |      |   |
|                                                                                        |   |      |       |   |       |   |    |       |   |   |      |   |
| Non-redeemable preferred stock                                                              |   | $         | 20,282     |   |       | $      | -       |       |   | $      | (4,224    | )      |   | $ | 16,058 |   |
|                                                                                        |   |      |       |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Common stock:                                                                               |   |      |       |   |       |   |    |       |   |   |      |   |   |   |   |   |
|                                                                                        |   |      |       |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Industrial, miscellaneous and all other                                                     |   |      | 6,418,151  |   |       |   | 707,798 |       |   |   | (357,364  | )      |   |   | 6,768,585 |   |
|                                                                                        |   |      |       |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Total equity securities available for sale at estimated fair value                          |   | $         | 6,438,433  |   |       | $      | 707,798 |       |   | $      | (361,588  | )      |   | $ | 6,784,643 |   |
|                                                                                        |   |      |       |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Total securities available for sale carried at estimated fair value                         |   | $         | 6,438,433  |   |       | $      | 707,798 |       |   | $      | (361,588  | )      |   | $ | 6,784,643 |   |
|                                                                                        |   |      |       |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Mortgage loans on real estate and construction loans held for investment at amortized cost: |   |      |       |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Residential                                                                                 |   | $         | 60,285,273 |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Residential construction                                                                    |   |      | 18,436,495 |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Commercial                                                                                  |   |      | 24,502,781 |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Less: Allowance for loan losses                                                             |   |      | (7,070,442 | )      |       |   |    |       |   |   |      |   |   |   |   |   |
| Total mortgage loans on real estate and construction loans held for investment              |   | $         | 96,154,107 |   |       |   |    |       |   |   |      |   |   |   |   |   |
|                                                                                        |   |      |       |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Real estate held for investment - net of depreciation                                       |   | $         | 3,996,777  |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Other real estate owned held for investment - net of depreciation                           |   |      | 44,422,829 |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Other real estate owned held for sale                                                       |   |      | 5,086,400  |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Total real estate                                                                           |   | $         | 53,506,006 |   |       |   |    |       |   |   |      |   |   |   |   |   |
|                                                                                        |   |      |       |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Policy, student and other loans at amortized cost - net of allowance for doubtful accounts  |   | $         | 17,044,897 |   |       |   |    |       |   |   |      |   |   |   |   |   |
|                                                                                        |   |      |       |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Short-term investments at amortized cost                                                    |   | $         | 2,618,349  |   |       |   |    |       |   |   |      |   |   |   |   |   |

----

|                                                                  |   |      |        |   | Gross      |   |      | Gross      |   |   | Estimated  |   |
|-----------------------------------------------------------------------|--------|-----------|-------------|--------|------------|--------|-----------|------------|--------|--------|------------|--------|
|                                                                  |   | Amortized |        |   | Unrealized |   |      | Unrealized |   |   | Fair       |   |
|                                                                  |   | Cost      |        |   | Gains      |   |      | Losses     |   |   | Value      |   |
| December 31, 2009:                                                    |   |      |        |   |       |   |      |       |   |   |       |   |
| Fixed maturity securities held to maturity carried at amortized cost: |   |      |        |   |       |   |      |       |   |   |       |   |
| Bonds:                                                                |   |      |        |   |       |   |      |       |   |   |       |   |
| U.S. Treasury securities and obligations of U.S Government agencies   |   | $         | 9,477,032   |   |       | $      | 430,783   |       |   | $      | (6,389     | )      |   | $ | 9,901,426 |   |
|                                                                  |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Obligations of states and political subdivisions                      |   |      | 2,034,784   |   |       |   | 95,333    |       |   |   | (20,722    | )      |   |   | 2,109,395 |   |
|                                                                  |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Corporate securities including public utilities                       |   |      | 95,903,129  |   |       |   | 3,927,607 |       |   |   | (2,763,448 | )      |   |   | 97,067,288 |   |
|                                                                  |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Mortgage-backed securities                                            |   |      | 6,852,072   |   |       |   | 182,932   |       |   |   | (1,338,817 | )      |   |   | 5,696,187 |   |
|                                                                  |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Redeemable preferred stock                                            |   |      | 1,565,283   |   |       |   | -         |       |   |   | (109,832   | )      |   |   | 1,455,451 |   |
|                                                                  |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Total fixed maturity securities held to maturity                      |   | $         | 115,832,300 |   |       | $      | 4,636,655 |       |   | $      | (4,239,208 | )      |   | $ | 116,229,747 |   |
|                                                                  |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Securities available for sale carried at estimated fair value:        |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
|                                                                  |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Fixed maturity securities available for sale:                         |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| U.S. Treasury securities and obligations of U.S. Government agencies  |   | $         | 98,280      |   |       | $      | 21,158    |       |   | $      | -          |   |   | $ | 119,438 |   |
|                                                                  |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Corporate securities including public utilities                       |   |      | 1,012,458   |   |       |   | 17,627    |       |   |   | -          |   |   |   | 1,030,085 |   |
|                                                                  |   |      |        |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Total fixed maturity securities available for sale                    |   | $         | 1,110,738   |   |       | $      | 38,785    |       |   | $      | -          |   |   | $ | 1,149,523 |   |

----

|                                                                                                         |   |      |        |   | Gross      |   |    | Gross      |   |   | Estimated |   |
|--------------------------------------------------------------------------------------------------------------|--------|-----------|-------------|--------|------------|--------|---------|------------|--------|--------|-----------|--------|
|                                                                                                         |   | Amortized |        |   | Unrealized |   |    | Unrealized |   |   | Fair      |   |
|                                                                                                         |   | Cost      |        |   | Gains      |   |    | Losses     |   |   | Value     |   |
| December 31, 2009:                                                                                           |   |      |        |   |       |   |    |       |   |   |      |   |
|                                                                                                         |   |      |        |   |       |   |    |       |   |   |      |   |
| Equity securities available for sale at estimated fair value:                                                |   |      |        |   |       |   |    |       |   |   |      |   |
|                                                                                                         |   |      |        |   |       |   |    |       |   |   |      |   |
| Non-redeemable preferred stock                                                                               |   | $         | 20,281      |   |       | $      | -       |       |   | $      | (5,061    | )      |   | $ | 15,220 |   |
|                                                                                                         |   |      |        |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Common stock:                                                                                                |   |      |        |   |       |   |    |       |   |   |      |   |   |   |   |   |
|                                                                                                         |   |      |        |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Industrial, miscellaneous and all other                                                                      |   |      | 5,398,320   |   |       |   | 682,075 |       |   |   | (309,001  | )      |   |   | 5,771,394 |   |
|                                                                                                         |   |      |        |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Total equity securities available for sale at estimated fair value                                           |   | $         | 5,418,601   |   |       | $      | 682,075 |       |   | $      | (314,062  | )      |   | $ | 5,786,614 |   |
|                                                                                                         |   |      |        |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Total securities available for sale carried at estimated fair value                                          |   | $         | 6,529,339   |   |       | $      | 720,860 |       |   | $      | (314,062  | )      |   | $ | 6,936,137 |   |
|                                                                                                         |   |      |        |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Mortgage loans on real estate and   construction loans held for investment at amortized cost: |   |      |        |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Residential                                                                                                  |   | $         | 60,863,842  |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Residential construction                                                                                     |   |      | 25,028,081  |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Commercial                                                                                                   |   |      | 24,206,956  |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Less: Allowance for loan losses                                                                              |   |      | (6,808,803  | )      |       |   |    |       |   |   |      |   |   |   |   |   |
|                                                                                                         |   |      |        |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Total mortgage loans on real estate and construction loans held for investment                               |   | $         | 103,290,076 |   |       |   |    |       |   |   |      |   |   |   |   |   |
|                                                                                                         |   |      |        |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Real estate held for investment - net of depreciation                                                        |   | $         | 4,080,033   |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Other real estate owned held for investment - net of depreciation                                            |   |      | 38,979,999  |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Other real estate owned held for sale                                                                        |   |      | 3,841,800   |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Total real estate                                                                                            |   | $         | 46,901,832  |   |       |   |    |       |   |   |      |   |   |   |   |   |
|                                                                                                         |   |      |        |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Policy, student and other loans at amortized cost - net of allowance for doubtful accounts                   |   | $         | 18,145,029  |   |       |   |    |       |   |   |      |   |   |   |   |   |
|                                                                                                         |   |      |        |   |       |   |    |       |   |   |      |   |   |   |   |   |
| Short-term investments at amortized cost                                                                     |   | $         | 7,144,319   |   |       |   |    |       |   |   |      |   |   |   |   |   |

----

|                                                                            |   | UnrealizedLosses forLess thanTwelveMonths |       |   | No. ofInvestmentPositions |   |   | UnrealizedLosses forMore thanTwelveMonths |   |   | No. ofInvestmentPositions |   |   | TotalUnrealizedLoss |   |
|---------------------------------------------------------------------------------|--------|-------------------------------------------|------------|--------|---------------------------|--------|--------|-------------------------------------------|--------|--------|---------------------------|--------|--------|---------------------|--------|
| At December 31, 2010                                                            |   |                                      |       |   |                      |   |   |                                      |   |   |                      |   |   |                |   |
| Redeemable Preferred Stock                                                      |   | $                                         | 4,022      |   |                      |   | 4      |                                      |   | $      | 28,149                    |   |   |                | 1      |   |   | $ | 32,171 |   |
| Obligations of States and Political Subdivisions                                |   |                                      | -          |   |                      |   | 0      |                                      |   |   | 18,574                    |   |   |                | 3      |   |   |   | 18,574 |   |
| Corporate Securities                                                            |   |                                      | 70,934     |   |                      |   | 10     |                                      |   |   | 645,073                   |   |   |                | 25     |   |   |   | 716,007 |   |
| Mortgage and other asset-backed securities                                      |   |                                      | 8,971      |   |                      |   | 2      |                                      |   |   | 645,988                   |   |   |                | 3      |   |   |   | 654,959 |   |
| Total unrealized losses                                                         |   | $                                         | 83,927     |   |                      |   | 16     |                                      |   | $      | 1,337,784                 |   |   |                | 32     |   |   | $ | 1,421,711 |   |
| Fair Value                                                                      |   | $                                         | 4,527,041  |   |                      |   |   |                                      |   | $      | 10,037,150                |   |   |                |   |   |   | $ | 14,564,191 |   |
|                                                                            |   |                                      |       |   |                      |   |   |                                      |   |   |                      |   |   |                |   |   |   |   |   |   |
| At December 31, 2009                                                            |   |                                      |       |   |                      |   |   |                                      |   |   |                      |   |   |                |   |   |   |   |   |   |
| Redeemable Preferred Stock                                                      |   | $                                         | -          |   |                      |   | 0      |                                      |   | $      | 109,832                   |   |   |                | 11     |   |   | $ | 109,832 |   |
| U.S. Treasury Securities and Obligations of  U.S. Government Agencies |   |                                      | 6,389      |   |                      |   | 2      |                                      |   |   | -                         |   |   |                | 0      |   |   |   | 6,389 |   |
| Obligations of States and Political  Subdivisions                     |   |                                      | 9,678      |   |                      |   | 3      |                                      |   |   | 11,044                    |   |   |                | 3      |   |   |   | 20,722 |   |
| Corporate Securities                                                            |   |                                      | 564,177    |   |                      |   | 36     |                                      |   |   | 2,199,271                 |   |   |                | 57     |   |   |   | 2,763,448 |   |
| Mortgage and other asset-backed securities                                      |   |                                      | 31,337     |   |                      |   | 3      |                                      |   |   | 1,307,480                 |   |   |                | 5      |   |   |   | 1,338,817 |   |
| Total unrealized losses                                                         |   | $                                         | 611,581    |   |                      |   | 44     |                                      |   | $      | 3,627,627                 |   |   |                | 76     |   |   | $ | 4,239,208 |   |
| Fair Value                                                                      |   | $                                         | 17,777,172 |   |                      |   |   |                                      |   | $      | 22,641,536                |   |   |                |   |   |   | $ | 40,418,708 |   |

----

|                                    |   | UnrealizedLosses forLess thanTwelveMonths |      |   | No. ofInvestmentPositions |   |   | UnrealizedLosses forMore thanTwelveMonths |   |   | No. ofInvestmentPositions |   |   | TotalUnrealizedLosses |   |
|-----------------------------------------|--------|-------------------------------------------|-----------|--------|---------------------------|--------|--------|-------------------------------------------|--------|--------|---------------------------|--------|--------|-----------------------|--------|
| At December 31, 2010                    |   |                                      |      |   |                      |   |   |                                      |   |   |                      |   |   |                  |   |
| Non-redeemable preferred stock          |   | $                                         | -         |   |                      |   | -      |                                      |   | $      | 4,224                     |   |   |                  | 2      |   |   | $ | 4,224 |   |
| Industrial, miscellaneous and all other |   |                                      | 192,742   |   |                      |   | 42     |                                      |   |   | 164,622                   |   |   |                  | 13     |   |   |   | 357,364 |   |
| Total unrealized losses                 |   | $                                         | 192,742   |   |                      |   | 42     |                                      |   | $      | 168,846                   |   |   |                  | 15     |   |   | $ | 361,588 |   |
| Fair Value                              |   | $                                         | 1,895,632 |   |                      |   |   |                                      |   | $      | 530,253                   |   |   |                  |   |   |   | $ | 2,425,885 |   |
|                                    |   |                                      |      |   |                      |   |   |                                      |   |   |                      |   |   |                  |   |   |   |   |   |   |
| At December 31, 2009                    |   |                                      |      |   |                      |   |   |                                      |   |   |                      |   |   |                  |   |   |   |   |   |   |
| Non-redeemable preferred stock          |   | $                                         | -         |   |                      |   | -      |                                      |   | $      | 5,061                     |   |   |                  | 2      |   |   | $ | 5,061 |   |
| Industrial, miscellaneous and all other |   |                                      | 55,287    |   |                      |   | 23     |                                      |   |   | 253,714                   |   |   |                  | 16     |   |   |   | 309,001 |   |
| Total unrealized losses                 |   | $                                         | 55,287    |   |                      |   | 23     |                                      |   | $      | 258,775                   |   |   |                  | 18     |   |   | $ | 314,062 |   |
| Fair Value                              |   | $                                         | 1,007,525 |   |                      |   |   |                                      |   | $      | 660,809                   |   |   |                  |   |   |   | $ | 1,668,334 |   |

----

|                       |   | Amortized |       |   | Estimated Fair |   |
|----------------------------|--------|-----------|------------|--------|----------------|--------|
|                       |   | Cost      |       |   | Value          |   |
| Held to Maturity:          |   |      |       |   |           |   |
| Due in 2011                |   | $         | 2,557,045  |   |           | $      | 2,621,118 |   |
| Due in 2012 through 2015   |   |      | 19,581,108 |   |           |   | 21,276,237 |   |
| Due in 2016 through 2020   |   |      | 29,862,779 |   |           |   | 32,727,472 |   |
| Due after 2020             |   |      | 37,982,520 |   |           |   | 39,699,126 |   |
| Mortgage-backed securities |   |      | 6,469,942  |   |           |   | 6,054,702 |   |
| Redeemable preferred stock |   |      | 1,594,622  |   |           |   | 1,589,609 |   |
| Total held to maturity     |   | $         | 98,048,016 |   |           | $      | 103,968,264 |   |

|                           |   | Amortized |      |   | Estimated Fair |   |
|--------------------------------|--------|-----------|-----------|--------|----------------|--------|
|                           |   | Cost      |      |   | Value          |   |
| Available for Sale:            |   |      |      |   |           |   |
| Due in 2011                    |   | $         | -         |   |           | $      | - |   |
| Due in 2012 through 2015       |   |      | -         |   |           |   | - |   |
| Due in 2016 through 2020       |   |      | -         |   |           |   | - |   |
| Due after 2020                 |   |      | -         |   |           |   | - |   |
| Non-redeemable preferred stock |   |      | 20,282    |   |           |   | 16,058 |   |
| Common stock                   |   |      | 6,418,151 |   |           |   | 6,768,585 |   |
| Total available for sale       |   | $         | 6,438,433 |   |           | $      | 6,784,643 |   |

|                                        |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|---------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Fixed maturity securities held to maturity: |   |   |      |   |   |   |      |   |   |
| Gross realized gains                        |   | $      | 1,300,187 |   |   | $      | 500,795   |   |   | $ | 90,243 |   |
| Gross realized losses                       |   |   | (494,678  | )      |   |   | (151,069  | )      |   |   | - |   |
| Other than temporary impairments            |   |   | (150,059  | )      |   |   | (326,000  | )      |   |   | (2,343,264 | ) |
|                                        |   |   |      |   |   |   |      |   |   |   |   |   |
| Securities available for sale:              |   |   |      |   |   |   |      |   |   |   |   |   |
| Gross realized gains                        |   |   | 686,788   |   |   |   | 1,018,217 |   |   |   | 1,211,932 |   |
| Gross realized losses                       |   |   | (61,530   | )      |   |   | (152,757  | )      |   |   | (152,213 | ) |
| Other than temporary impairments            |   |   | (23,922   | )      |   |   | -         |   |   |   | (408,640 | ) |
|                                        |   |   |      |   |   |   |      |   |   |   |   |   |
| Other assets:                               |   |   |      |   |   |   |      |   |   |   |   |   |
| Gross realized gains                        |   |   | 393,943   |   |   |   | 8,126     |   |   |   | - |   |
| Gross realized losses                       |   |   | (209,292  | )      |   |   | -         |   |   |   | (131,773 | ) |
| Other than temporary impairments            |   |   | (500,000  | )      |   |   | -         |   |   |   | - |   |
| Total                                       |   | $      | 941,437   |   |   | $      | 897,312   |   |   | $ | (1,733,715 | ) |

----

|                                                                          |   | 2010   |       |   | 2009   |   |       | 2008   |   |
|-------------------------------------------------------------------------------|--------|--------|------------|--------|--------|--------|------------|--------|--------|
| Fixed maturity securities                                                     |   | $      | 6,761,254  |   |   | $      | 7,140,920  |   |   | $ | 7,167,007 |   |
| Equity securities                                                             |   |   | 238,928    |   |   |   | 794,845    |   |   |   | 266,533 |   |
| Mortgage loans on real estate                                                 |   |   | 6,154,760  |   |   |   | 5,462,533  |   |   |   | 6,857,757 |   |
| Real estate                                                                   |   |   | 1,686,844  |   |   |   | 1,561,809  |   |   |   | 1,563,134 |   |
| Policy, student and other loans                                               |   |   | 891,546    |   |   |   | 811,684    |   |   |   | 699,592 |   |
| Short-term investments, principally gains on sale of mortgage loans and other |   |   | 7,215,926  |   |   |   | 7,896,518  |   |   |   | 14,265,269 |   |
| Gross investment income                                                       |   |   | 22,949,258 |   |   |   | 23,668,309 |   |   |   | 30,819,292 |   |
| Investment expenses                                                           |   |   | (5,155,172 | )      |   |   | (4,339,409 | )      |   |   | (2,772,130 | ) |
| Net investment income                                                         |   | $      | 17,794,086 |   |   | $      | 19,328,900 |   |   | $ | 28,047,162 |   |

----

| Allowance for Credit Losses and Recorded Investment in Mortgage Loans |
|-----------------------------------------------------------------------|
| For the Years Ended December 31, 2010, and 2009                       |

|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |
|-----------------------------------------------------------------|--------|------------|------------|--------|-------------|--------|------------|-------------------------|--------|--------|------------|--------|
|                                                            |   | Commercial |       |   | Residential |   |       | ResidentialConstruction |   |   | Total      |   |
| 2010                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |
| Allowance for credit losses:                                    |   |       |       |   |        |   |       |                    |   |   |       |   |
| Beginning balance                                               |   | $          | -          |   |        | $      | 5,917,792  |                    |   | $      | 891,011    |   |   | $ | 6,808,803 |   |
|    Charge-offs                                   |   |       | -          |   |        |   | (335,853   | )                       |   |   | (32,641    | )      |   |   | (368,494 | ) |
|    Provision                                     |   |       | -          |   |        |   | 630,133    |                    |   |   | -          |   |   |   | 630,133 |   |
| Ending balance                                                  |   | $          | -          |   |        | $      | 6,212,072  |                    |   | $      | 858,370    |   |   | $ | 7,070,442 |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance: individually evaluated for impairment           |   | $          | -          |   |        | $      | 5,131,779  |                    |   | $      | 740,000    |   |   | $ | 5,871,779 |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment           |   | $          | -          |   |        | $      | 1,080,293  |                    |   | $      | 118,370    |   |   | $ | 1,198,663 |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance: loans acquired with deteriorated credit quality |   | $          | -          |   |        | $      | -          |                    |   | $      | -          |   |   | $ | - |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Mortgage loans:                                                 |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance                                                  |   | $          | 24,502,781 |   |        | $      | 60,285,273 |                    |   | $      | 18,436,495 |   |   | $ | 103,224,549 |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance: individually evaluated for impairment           |   | $          | -          |   |        | $      | 7,236,095  |                    |   | $      | 2,085,467  |   |   | $ | 9,321,562 |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment           |   | $          | 24,502,781 |   |        | $      | 53,049,178 |                    |   | $      | 16,351,028 |   |   | $ | 93,902,987 |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance: loans acquired with deteriorated credit quality |   | $          | -          |   |        | $      | -          |                    |   | $      | -          |   |   | $ | - |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| 2009                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Allowance for credit losses:                                    |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Beginning balance                                               |   | $          | -          |   |        | $      | 4,139,456  |                    |   | $      | 641,011    |   |   | $ | 4,780,467 |   |
|    Charge-offs                                   |   |       | -          |   |        |   | (1,137,707 | )                       |   |   | -          |   |   |   | (1,137,707 | ) |
|    Provision                                     |   |       | -          |   |        |   | 2,916,043  |                    |   |   | 250,000    |   |   |   | 3,166,043 |   |
| Ending balance                                                  |   | $          | -          |   |        | $      | 5,917,792  |                    |   | $      | 891,011    |   |   | $ | 6,808,803 |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance: individually evaluated for impairment           |   | $          | -          |   |        | $      | 4,851,669  |                    |   | $      | 740,000    |   |   | $ | 5,591,669 |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment           |   | $          | -          |   |        | $      | 1,066,123  |                    |   | $      | 151,011    |   |   | $ | 1,217,134 |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance: loans acquired with deteriorated credit quality |   | $          | -          |   |        | $      | -          |                    |   | $      | -          |   |   | $ | - |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Mortgage loans:                                                 |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance                                                  |   | $          | 24,206,957 |   |        | $      | 60,863,841 |                    |   | $      | 25,028,081 |   |   | $ | 110,098,879 |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance: individually evaluated for impairment           |   | $          | -          |   |        | $      | 9,218,615  |                    |   | $      | 2,889,184  |   |   | $ | 12,107,799 |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment           |   | $          | 24,206,957 |   |        | $      | 51,645,226 |                    |   | $      | 22,138,897 |   |   | $ | 97,991,080 |   |
|                                                            |   |       |       |   |        |   |       |                    |   |   |       |   |   |   |   |   |
| Ending balance: loans acquired with deteriorated credit quality |   | $          | -          |   |        | $      | -          |                    |   | $      | -          |   |   | $ | - |   |

----

| Age Analysis of Past Due Mortgage Loans                                                                        |   |
|----------------------------------------------------------------------------------------------------------------|--------|
| Years Ended December 31, 2010 and 2009                                                                         |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                           |   | 30-59 DaysPast Due |   |   | 60-89 DaysPast Due |   |   | Greater Than90 Days 1) |   |   | In Foreclosure1) |   |   | TotalPast Due |   |   | Current |   |   | Total MortgageLoans |   |   | Allowance forLoan Losses |   |   | Net MortgageLoans |   |
| 2010                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                     |   | $ | - |   |   | $ | 734,756 |   |   | $ | - |   |   | $ | 439,794 |   |   | $ | 1,174,550 |   |   | $ | 23,328,231 |   |   | $ | 24,502,781 |   |   | $ | - |   |   | $ | 24,502,781 |   |
| Residential                                                                                                    |   |   | 767,970 |   |   |   | 782,174 |   |   |   | 3,537,616 |   |   |   | 7,236,095 |   |   |   | 12,323,855 |   |   |   | 47,961,418 |   |   |   | 60,285,273 |   |   |   | (6,212,072 | ) |   |   | 54,454,831 |   |
| Residential  Construction                                                                            |   |   | 849,375 |   |   |   | 1,543,593 |   |   |   | 994,046 |   |   |   | 2,085,467 |   |   |   | 5,472,481 |   |   |   | 12,964,014 |   |   |   | 18,436,495 |   |   |   | (858,370 | ) |   |   | 17,196,495 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                          |   | $ | 1,617,345 |   |   | $ | 3,060,523 |   |   | $ | 4,531,662 |   |   | $ | 9,761,356 |   |   | $ | 18,970,886 |   |   | $ | 84,253,663 |   |   | $ | 103,224,549 |   |   | $ | (7,070,442 | ) |   | $ | 96,154,107 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                                     |   | $ | 1,523,707 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 1,523,707 |   |   | $ | 22,683,250 |   |   | $ | 24,206,957 |   |   | $ | - |   |   | $ | 24,206,957 |   |
| Residential                                                                                                    |   |   | 1,392,842 |   |   |   | 800,508 |   |   |   | 5,331,782 |   |   |   | 9,218,615 |   |   |   | 16,743,747 |   |   |   | 44,120,094 |   |   |   | 60,863,841 |   |   |   | (5,917,792 | ) |   |   | 55,295,038 |   |
| Residential  Construction                                                                            |   |   | 1,684,277 |   |   |   | 834,469 |   |   |   | 2,098,554 |   |   |   | 2,889,184 |   |   |   | 7,506,484 |   |   |   | 17,521,597 |   |   |   | 25,028,081 |   |   |   | (891,011 | ) |   |   | 23,788,081 |   |
|                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                                          |   | $ | 4,600,826 |   |   | $ | 1,634,977 |   |   | $ | 7,430,336 |   |   | $ | 12,107,799 |   |   | $ | 25,773,938 |   |   | $ | 84,324,941 |   |   | $ | 110,098,879 |   |   | $ | (6,808,803 | ) |   | $ | 103,290,076 |   |
| 1) There was not any interest income recognized on loans past due greater than 90 days or in foreclosure. |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Impaired Loans                                  |   |
|-------------------------------------------------|--------|
| For the Years Ended December 31, 2010, and 2009 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                            |   | RecordedInvestment |   |   | UnpaidPrincipalBalance |   |   | RelatedAllowance |   |   | AverageRecordedInvestment |   |   | InterestIncomeRecognized |   |
| 2010                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With no related allowance recorded:             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial                    |   | $ | 439,794 |   |   | $ | 439,794 |   |   |   |   |   | $ | 439,794 |   |   | $ | - |   |
|    Residential                   |   |   | 3,537,616 |   |   |   | 3,537,616 |   |   |   |   |   |   | 3,537,616 |   |   |   | - |   |
|    Residential construction      |   |   | 994,046 |   |   |   | 994,046 |   |   |   |   |   |   | 994,046 |   |   |   | - |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded:                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial                    |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|    Residential                   |   |   | 7,236,095 |   |   |   | 7,236,095 |   |   |   | 5,131,779 |   |   |   | 7,236,095 |   |   |   | - |   |
|    Residential construction      |   |   | 2,085,467 |   |   |   | 2,085,467 |   |   |   | 740,000 |   |   |   | 2,085,467 |   |   |   | - |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total:                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial                    |   | $ | 439,794 |   |   | $ | 439,794 |   |   | $ | - |   |   | $ | 439,794 |   |   | $ | - |   |
|    Residential                   |   |   | 10,773,711 |   |   |   | 10,773,711 |   |   |   | 5,131,779 |   |   |   | 10,773,711 |   |   |   | - |   |
|    Residential construction      |   |   | 3,079,513 |   |   |   | 3,079,513 |   |   |   | 740,000 |   |   |   | 3,079,513 |   |   |   | - |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 2009                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With no related allowance recorded:             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial                    |   | $ | - |   |   | $ | - |   |   |   |   |   |   | $ | - |   |   | $ | - |   |
|    Residential                   |   |   | 5,331,782 |   |   |   | 5,331,782 |   |   |   |   |   |   |   | 5,331,782 |   |   |   | - |   |
|    Residential construction      |   |   | 2,098,554 |   |   |   | 2,098,554 |   |   |   |   |   |   |   | 2,098,554 |   |   |   | - |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded:                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial                    |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|    Residential                   |   |   | 9,218,615 |   |   |   | 9,218,615 |   |   |   | 4,851,669 |   |   |   | 9,218,615 |   |   |   | - |   |
|    Residential construction      |   |   | 2,889,184 |   |   |   | 2,889,184 |   |   |   | 740,000 |   |   |   | 2,889,184 |   |   |   | - |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total:                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial                    |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|    Residential                   |   |   | 14,550,397 |   |   |   | 14,550,397 |   |   |   | 4,851,669 |   |   |   | 14,550,397 |   |   |   | - |   |
|    Residential construction      |   |   | 4,987,738 |   |   |   | 4,987,738 |   |   |   | 740,000 |   |   |   | 4,987,738 |   |   |   | - |   |

| Mortgage Loan Credit Exposure                 |   |
|-----------------------------------------------|--------|
| Credit Risk Profile Based on Payment Activity |   |
| As of December 31, 2010, and 2009             |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   | Commercial |   |   | Residential |   |   | Residential Construction |   |   | Total |   |
|                                          |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Peforming                                     |   | $ | 24,062,987 |   |   | $ | 24,206,957 |   |   | $ | 49,511,562 |   |   | $ | 46,313,444 |   |   | $ | 15,356,982 |   |   | $ | 20,040,343 |   |   | $ | 88,931,531 |   |   | $ | 90,560,744 |   |
| Nonperforming                                 |   |   | 439,794 |   |   |   | - |   |   |   | 10,773,711 |   |   |   | 14,550,397 |   |   |   | 3,079,513 |   |   |   | 4,987,738 |   |   |   | 14,293,018 |   |   |   | 19,538,135 |   |
| Total                                         |   | $ | 24,502,781 |   |   | $ | 24,206,957 |   |   | $ | 60,285,273 |   |   | $ | 60,863,841 |   |   | $ | 18,436,495 |   |   | $ | 25,028,081 |   |   | $ | 103,224,549 |   |   | $ | 110,098,879 |   |

----

|                     |   | Mortgage Loans on Nonaccrual Status |       |
|--------------------------|--------|-------------------------------------|------------|
|                     |   | As of December 31, 2010, and 2009   |       |
|                     |   |                                |       |   |   |   |
|                     |   | 2010                                |       |   | 2009 |   |
| Commercial               |   | $                                   | 439,794    |   |   | $ | - |   |
| Residential              |   |                                | 10,773,711 |   |   |   | 14,550,397 |   |
| Residential construction |   |                                | 3,079,513  |   |   |   | 4,987,738 |   |
|                     |   |                                |       |   |   |   |   |   |
| Total                    |   | $                                   | 14,293,018 |   |   | $ | 19,538,135 |   |

|                         |   | Years Ended December 31, |        |
|------------------------------|--------|--------------------------|-------------|
|                         |   | 2010                     |        |   | 2009 |   |
| Balance, beginning of period |   | $                        | 11,662,897  |   |   | $ | 2,775,452 |   |
| Provisions for losses        |   |                     | 4,534,231   |   |   |   | 17,306,471 |   |
| Charge-offs                  |   |                     | (10,298,103 | ) |   |   | (8,419,026 | ) |
| Balance, at December 31      |   | $                        | 5,899,025   |   |   | $ | 11,662,897 |   |

----

|                                                          |   | December 31, |       |
|---------------------------------------------------------------|--------|--------------|------------|
|                                                          |   | 2010         |       |   | 2009 |   |
| Trade contracts                                               |   | $            | 5,447,268  |   |   | $ | 8,039,501 |   |
| Advances receivables from sales agents                        |   |         | 1,766,823  |   |   |   | 2,282,899 |   |
| Held in Escrow – Capital Reserve Life/Southern Security |   |         | 616,383    |   |   |   | 616,383 |   |
| Other                                                         |   |         | 1,991,987  |   |   |   | 2,117,480 |   |
| Total receivables                                             |   |         | 9,822,461  |   |   |   | 13,056,263 |   |
| Allowance for doubtful accounts                               |   |         | (1,995,347 | ) |   |   | (2,183,056 | ) |
| Net receivables                                               |   | $            | 7,827,114  |   |   | $ | 10,873,207 |   |

|                                  |   | December 31, |       |
|---------------------------------------|--------|--------------|------------|
|                                  |   | 2010         |       |   | 2009 |   |   | 2008 |   |
| Balance at beginning of year          |   | $            | 10,252,670 |   |   | $ | 11,377,276 |   |   | $ | 11,686,080 |   |
| Value of  business acquired |   |         | (515,147   | ) |   |   | 246,838 |   |   |   | 590,950 |   |
| Imputed interest at 7%                |   |         | 674,463    |   |   |   | 757,048 |   |   |   | 807,217 |   |
| Amortization                          |   |         | (1,394,290 | ) |   |   | (2,128,492 | ) |   |   | (1,706,971 | ) |
| Net amortization charged to income    |   |         | (719,827   | ) |   |   | (1,371,444 | ) |   |   | (899,754 | ) |
| Balance at end of year                |   | $            | 9,017,696  |   |   | $ | 10,252,670 |   |   | $ | 11,377,276 |   |

|                                |   | December 31, |        |
|-------------------------------------|--------|--------------|-------------|
|                                |   | 2010         |        |   | 2009 |   |
|  Land and buildings            |   | $            | 14,344,140  |   |   | $ | 15,069,284 |   |
|  Furniture and equipment       |   |         | 13,002,174  |   |   |   | 16,058,583 |   |
|                                |   |         | 27,346,314  |   |   |   | 31,127,867 |   |
|  Less accumulated depreciation |   |         | (16,235,255 | ) |   |   | (19,133,583 | ) |
|  Total                         |   | $            | 11,111,059  |   |   | $ | 11,994,284 |   |

----

|                                                                                                                                                                                                    |   | December 31, |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|
|                                                                                                                                                                                                    |   | 2010         |      |   | 2009 |   |
| 6% note payable in monthly installments of $5,693 including principal and interest, collateralized by real property, with a book value of approximately $518,000, due September 2015.              |   | $            | 412,860   |   |   | $ | 457,420 |   |
|                                                                                                                                                                                                    |   |         |      |   |   |   |   |   |
|  6.34% note payable in monthly installments of $13,556 including principal and interest, collateralized by real property with a book value of approximately $520,000, due November 2017. |   |         | 997,546   |   |   |   | 1,109,975 |   |
|                                                                                                                                                                                                    |   |         |      |   |   |   |   |   |
| Bank prime rate less .28% (2.97% at December 31, 2010) collateralized by shares of Security National Life Insurance Company Stock, due June 2011.                                                       |   |         | 357,336   |   |   |   | 1,192,820 |   |
|                                                                                                                                                                                                    |   |         |      |   |   |   |   |   |
| 5.75% note payable in monthly installments of $28,271 including principal and interest, collateralized by real property with a book value of approximately $6,311,000 due December 2014.                |   |         | 3,887,818 |   |   |   | 4,000,000 |   |
|                                                                                                                                                                                                    |   |         |      |   |   |   |   |   |
| Bank prime rate less .75% (2.50% at December 31, 2010) collateralized by shares of Security National Life Insurance Company Stock, due June 2011.                                                       |   |         | 825,000   |   |   |   | 1,375,000 |   |
|                                                                                                                                                                                                    |   |         |      |   |   |   |   |   |
| Mark to market of interest rate swaps (discussed below) adjustment                                                                                                                                      |   |         | 116,533   |   |   |   | 101,251 |   |
|                                                                                                                                                                                                    |   |         |      |   |   |   |   |   |
| Other collateralized bank loans payable                                                                                                                                                                 |   |         | 269,345   |   |   |   | 419,779 |   |
| Total bank loans                                                                                                                                                                                        |   |         | 6,866,438 |   |   |   | 8,656,245 |   |
|                                                                                                                                                                                                    |   |         |      |   |   |   |   |   |
| Less current installments                                                                                                                                                                               |   |         | 1,708,819 |   |   |   | 2,319,017 |   |
| Bank loans, excluding current installments                                                                                                                                                              |   | $            | 5,157,619 |   |   | $ | 6,337,228 |   |

----

----

|                                                                                                                                                                                                                                                               |   | December 31, |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|---------|
|                                                                                                                                                                                                                                                               |   | 2010         |    |   | 2009 |   |
| Unsecured note payable due to former stockholders of  Deseret Memorial,  Inc. resulting from the acquisition of such entity. Amount represents the present value, discounted at 8%, of monthly annuity payments of $5,900, due September 2011. |   | $            | 45,752  |   |   | $ | 109,366 |   |
|                                                                                                                                                                                                                                                               |   |         |    |   |   |   |   |   |
| Other notes payable                                                                                                                                                                                                                                                |   |         | 153,785 |   |   |   | 174,378 |   |
| Total notes and contracts payable                                                                                                                                                                                                                                  |   |         | 199,537 |   |   |   | 283,744 |   |
| Less current installments                                                                                                                                                                                                                                          |   |         | 69,148  |   |   |   | 85,168 |   |
|                                                                                                                                                                                                                                                               |   |         |    |   |   |   |   |   |
| Notes and contracts, excluding current  installments                                                                                                                                                                                                     |   | $            | 130,389 |   |   | $ | 198,576 |   |

----

| 2011       |   | $      | 1,777,967 |   |
|------------|--------|--------|-----------|--------|
| 2012       |   |   | 409,999   |   |
| 2013       |   |   | 402,837   |   |
| 2014       |   |   | 3,740,794 |   |
| 2015       |   |   | 403,771   |   |
| Thereafter |   |   | 330,607   |   |
| Total      |   | $      | 7,065,975 |   |

|                                                                                                                         |   | December 31, |       |
|------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|
|                                                                                                                         |   | 2010         |       |   | 2009 |   |
| Trust investments, at market value                                                                                           |   | $            | 1,454,694  |   |   | $ | 1,104,046 |   |
| Note receivables from Cottonwood Mortuary Singing Hills Cemetery and Memorial Estates - Pinehill eliminated in consolidation |   |         | 2,013,174  |   |   |   | 2,052,331 |   |
| Total trust assets                                                                                                           |   |         | 3,467,868  |   |   |   | 3,156,377 |   |
| Cemetery perpetual care obligation                                                                                           |   |         | (2,853,727 | ) |   |   | (2,756,174 | ) |
| Fair value of trust assets in excess of trust obligations                                                                    |   | $            | 614,141    |   |   | $ | 400,203 |   |

----

|                                                        |   | December 31, |      |
|-------------------------------------------------------------|--------|--------------|-----------|
|                                                        |   | 2010         |      |   | 2009 |   |
| Cash and cash equivalents                                   |   | $            | 1,522,295 |   |   | $ | 1,175,646 |   |
| Mutual funds                                                |   |         | 467,413   |   |   |   | 416,002 |   |
| Fixed maturity securities                                   |   |         | 8,775     |   |   |   | 8,775 |   |
| Equity securities                                           |   |         | 78,020    |   |   |   | 76,850 |   |
| Participating in Mortgage loans with Security National Life |   |         | 989,876   |   |   |   | 916,141 |   |
| Total                                                       |   | $            | 3,066,379 |   |   | $ | 2,593,414 |   |

|     |   | December 31, |       |
|----------|--------|--------------|------------|
|     |   | 2010         |       |   | 2009 |   |
| Current  |   | $            | 21,224     |   |   | $ | 608,060 |   |
| Deferred |   |         | 15,334,961 |   |   |   | 16,736,809 |   |
| Total    |   | $            | 15,356,185 |   |   | $ | 17,344,869 |   |

|                                       |   | December 31, |       |
|--------------------------------------------|--------|--------------|------------|
|                                       |   | 2010         |       |   | 2009 |   |
| Assets                                     |   |         |       |   |   |   |
| Future policy benefits                     |   | $            | (6,195,069 | ) |   | $ | (6,140,507 | ) |
| Loan loss reserve                          |   |         | (2,005,669 | ) |   |   | (2,679,449 | ) |
| Unearned premium                           |   |         | (1,929,161 | ) |   |   | (1,768,838 | ) |
| Other                                      |   |         | (1,064,441 | ) |   |   | (1,296,635 | ) |
| Less: Valuation allowance                  |   |         | 6,105,175  |   |   |   | 6,727,260 |   |
| Total deferred tax assets                  |   |         | (5,089,165 | ) |   |   | (5,158,169 | ) |
|                                       |   |         |       |   |   |   |   |   |
| Liabilities                                |   |         |       |   |   |   |   |   |
| Deferred policy acquisition costs          |   |         | 9,503,086  |   |   |   | 9,146,293 |   |
| Basis difference in property and equipment |   |         | 2,873,142  |   |   |   | 4,018,057 |   |
| Value of business acquired                 |   |         | 3,336,548  |   |   |   | 3,793,488 |   |
| Installment sales                          |   |         | 2,172,164  |   |   |   | 2,356,322 |   |
| Trusts                                     |   |         | 2,014,812  |   |   |   | 1,908,905 |   |
| Available for sale securities              |   |         | 24,632     |   |   |   | 6,147 |   |
| Tax on unrealized appreciation             |   |         | 499,742    |   |   |   | 665,766 |   |
| Total deferred tax liabilities             |   |         | 20,424,126 |   |   |   | 21,894,978 |   |
| Net deferred tax liability                 |   | $            | 15,334,961 |   |   | $ | 16,736,809 |   |

----

|     |   | 2010   |     |   | 2009   |   |      | 2008   |   |
|----------|--------|--------|----------|--------|--------|--------|-----------|--------|--------|
| Current  |   | $      | 171,133  |   |   | $      | 1,002,789 |   |   | $ | 214,888 |   |
| Deferred |   |   | (829,929 | )      |   |   | 1,366,336 |   |   |   | (234,338 | ) |
| Other    |   |   | -        |   |   |   | 204,653   |   |   |   | 175,108 |   |
| Total    |   | $      | (658,796 | )      |   | $      | 2,573,778 |   |   | $ | 155,658 |   |

| The reconciliation of income tax expense at the U.S. federal statutory rates is as follows: |   |
|---------------------------------------------------------------------------------------------|--------|

|                                                      |   |   |     |   |   |   |      |   |   |   |    |   |
|-----------------------------------------------------------|--------|--------|----------|--------|--------|--------|-----------|--------|--------|--------|---------|--------|
|                                                      |   |   | 2010     |   |   |   | 2009      |   |   |   | 2008    |   |
| Computed expense at statutory rate                        |   | $      | (370,403 | )      |   | $      | 2,158,204 |   |   | $      | 248,374 |   |
| Special deductions allowed small life insurance companies |   |   | (351,847 | )      |   |   | (50,983   | )      |   |   | (20,918 | )      |
| Other, net                                                |   |   | 63,454   |   |   |   | 466,557   |   |   |   | (71,798 | )      |
| Tax expense                                               |   | $      | (658,796 | )      |   | $      | 2,573,778 |   |   | $      | 155,658 |   |

----

| 11) | Reinsurance, Commitments and Contingencies (Continued) |
|-----|--------------------------------------------------------|

| Years Ending |   |   |      |
|--------------|--------|--------|-----------|
| December 31  |   |   |      |
| 2011         |   | $      | 1,042,612 |   |
| 2012         |   |   | 675,530   |   |
| 2013         |   |   | 307,604   |   |
| 2014         |   |   | 217,438   |   |
| 2015         |   |   | 102,776   |   |
| Total        |   | $      | 2,345,960 |   |

----

| 11) | Reinsurance, Commitments and Contingencies (Continued) |
|-----|--------------------------------------------------------|

----

| 11) | Reinsurance, Commitments and Contingencies (Continued) |
|-----|--------------------------------------------------------|

----

| 11) | Reinsurance, Commitments and Contingencies (Continued) |
|-----|--------------------------------------------------------|

----

| 11) | Reinsurance, Commitments and Contingencies (Continued) |
|-----|--------------------------------------------------------|

----

| 11) | Reinsurance, Commitments and Contingencies (Continued) |
|-----|--------------------------------------------------------|

----

| 13) | Capital Stock |
|-----|---------------|

----

| 13) | Capital Stock (Continued) |
|-----|---------------------------|

|                             |   | Class A |      |   | Class C |   |
|----------------------------------|--------|---------|-----------|--------|---------|--------|
| Balance at December 31, 2007     |   |    | 7,885,229 |   |    |   | 8,530,699 |   |
|                             |   |    |      |   |    |   |   |   |
| Exercise of stock options        |   |    | --        |   |    |   | -- |   |
| Stock dividends                  |   |    | 394,677   |   |    |   | 423,635 |   |
| Conversion of Class C to Class A |   |    | 4,203     |   |    |   | (42,019 | ) |
|                             |   |    |      |   |    |   |   |   |
| Balance at December 31, 2008     |   |    | 8,284,109 |   |    |   | 8,912,315 |   |
|                             |   |    |      |   |    |   |   |   |
| Exercise of stock options        |   |    | 16,481    |   |    |   | -- |   |
| Stock dividends                  |   |    | 415,868   |   |    |   | 438,776 |   |
| Conversion of Class C to Class A |   |    | 13,689    |   |    |   | (136,880 | ) |
| Reinstatement                    |   |    | 80        |   |    |   | -- |   |
|                             |   |    |      |   |    |   |   |   |
| Balance at December 31, 2009     |   |    | 8,730,227 |   |    |   | 9,214,211 |   |
|                             |   |    |      |   |    |   |   |   |
| Exercise of stock options        |   |    | 10,174    |   |    |   | -- |   |
| Stock dividends                  |   |    | 437,138   |   |    |   | 460,005 |   |
| Conversion of Class C to Class A |   |    | 1,406     |   |    |   | (14,064 | ) |
| Reinstatement                    |   |    | -         |   |    |   | -- |   |
|                             |   |    |      |   |    |   |   |   |
| Balance at December 31, 2010     |   |    | 9,178,945 |   |    |   | 9,660,152 |   |

|                                                                                                       |   | 2010   |      |   | 2009   |   |      | 2008   |   |
|------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|-----------|--------|--------|
| Numerator:                                                                                                 |   |   |      |   |   |   |      |   |   |
| Net earnings (loss)                                                                                        |   | $      | (430,624  | )      |   | $      | 3,773,880 |   |   | $ | 574,853 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Denominator:                                                                                               |   |   |      |   |   |   |      |   |   |   |   |   |
| Denominator for basic earnings per share-weighted-average shares                                           |   |   | 8,716,921 |   |   |   | 8,697,222 |   |   |   | 9,103,118 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Effect of dilutive securities                                                                              |   |   |      |   |   |   |      |   |   |   |   |   |
| Employee stock options                                                                                     |   |   | -         |   |   |   | 2,368     |   |   |   | -- |   |
| Dilutive potential common shares                                                                           |   |   | -         |   |   |   | 2,368     |   |   |   | -- |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Denominator for diluted earnings (loss) per share-adjusted weighted-average shares and assumed conversions |   |   | 8,716,921 |   |   |   | 8,699,590 |   |   |   | 9,103,118 |   |
|                                                                                                       |   |   |      |   |   |   |      |   |   |   |   |   |
| Basic earnings (loss) per share                                                                            |   | $      | (0.05     | )      |   | $      | 0.43      |   |   | $ | 0.06 |   |
| Diluted earnings (loss) per share                                                                          |   | $      | (0.05     | )      |   | $      | 0.43      |   |   | $ | 0.06 |   |

----

----

|  Activity of the 1993 Plan is summarized as follows:                     |   |                    |    |   |         |          |
|-------------------------------------------------------------------------------|--------|-------------------------|---------|--------|--------------|---------------|
|                                                                          |   | Number ofClass A Shares |    |   | Option Price |          |
| Outstanding at December 31, 2007                                              |   |                    | 291,703 |   |         | $1.71 - $4.62 |   |
| Adjustment for the effect of stock dividends                                  |   |                    | 13,466  |   |         |          |   |   |
| Exercised                                                                     |   |                    | --      |   |         |          |   |   |
| Cancelled                                                                     |   |                    | (22,402 | )      |         |          |   |   |
|                                                                          |   |                    |    |   |         |          |   |   |
| Outstanding at December 31, 2008                                              |   |                    | 282,767 |   |         | $1.62 - $4.40 |   |
| Adjustment for the effect of stock dividends                                  |   |                    | 13,902  |   |         |          |   |   |
| Exercised                                                                     |   |                    | --      |   |         |          |   |   |
| Cancelled                                                                     |   |                    | (4,719  | )      |         |          |   |   |
|                                                                          |   |                    |    |   |         |          |   |   |
| Outstanding at December 31, 2009                                              |   |                    | 291,950 |   |         | $1.54 - $4.19 |   |
| Adjustment for the effect of stock dividends                                  |   |                    | 14,598  |   |         |          |   |   |
| Exercised                                                                     |   |                    | --      |   |         |          |   |   |
| Cancelled                                                                     |   |                    | --      |   |         |          |   |   |
|                                                                          |   |                    |    |   |         |          |   |   |
| Outstanding at December 31, 2010                                              |   |                    | 306,548 |   |         | $1.47 - $3.99 |   |
|                                                                          |   |                    |    |   |         |          |   |   |
| Exercisable at end of year                                                    |   |                    | 306,548 |   |         | $1.47 - $3.99 |   |
|                                                                          |   |                    |    |   |         |          |   |   |
| Available options for future grant 1993 Stock Incentive Plan                  |   |                    | -0-     |   |         |          |   |   |
|                                                                          |   |                    |    |   |         |          |   |   |
| Weighted average contractual term of options outstanding at December 31, 2010 |   | 2.1 years               |    |   |         |          |   |
|                                                                          |   |                    |    |   |         |          |   |   |
| Aggregated intrinsic value of options outstanding at December 31, 2010        |   | $                       | -0-     |   |         |          |   |   |

----

| Activity of the 2000 Plan is summarized as follows:                           |   |
|-------------------------------------------------------------------------------|--------|
|                                                                          |   | Number of |   |   |   |   |
|                                                                          |   | Class A Shares |   |   | Option Price |   |
| Outstanding at December 31, 2007                                              |   |   | 14,600 |   |   | $2.70 - $4.71 |   |
| Adjustment for the effect of stock dividends                                  |   |   | 474 |   |   |   |   |   |
| Granted                                                                       |   |   | -- |   |   |   |   |   |
| Cancelled                                                                     |   |   | (5,104 | ) |   |   |   |   |
| Outstanding at December 31, 2008                                              |   |   | 9,970 |   |   | $2.58 - $3.02 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| Adjustment for the effect of stock dividends                                  |   |   | 244 |   |   |   |   |   |
| Granted                                                                       |   |   | -- |   |   |   |   |   |
| Cancelled                                                                     |   |   | (5,110 | ) |   |   |   |   |
| Outstanding at December 31, 2009                                              |   |   | 5,104 |   |   | $2.45 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| Adjustment for the effect of stock dividends                                  |   |   | -- |   |   |   |   |   |
| Granted                                                                       |   |   | -- |   |   |   |   |   |
| Cancelled                                                                     |   |   | (5,104 | ) |   |   |   |   |
| Outstanding at December 31, 2010                                              |   |   | - |   |   | $0.00 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| Exercisable at end of year                                                    |   |   | - |   |   | $0.00 |   |
|                                                                          |   |   |   |   |   |   |   |   |
| Available options for future grant 2000 Director Plan                         |   |   | -0- |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |
| Weighted average contractual term of options outstanding at December 31, 2010 |   |   | 0 |   |   |   |   |   |
|                                                                          |   |   |   |   |   |   |   |   |
| Aggregated intrinsic value of options outstanding at December 31, 2010        |   | $ | -0- |   |   |   |   |   |

----

----

|                                                                                                                                                   |   | Number ofClass A Shares |      |   | Number ofClass C Shares(1) |   |      | OptionPrice(1) |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|-----------|--------|----------------------------|--------|-----------|----------------|--------|
|                                                                                                                                                   |   |                    |      |   |                       |   |      |           |   |
| Outstanding at December 31, 2007                                                                                                                       |   |                    | 455,162   |   |                       |   | --        |           |   | $2.66 - $3.33 |   |
| Adjustment for the effect of stock dividends                                                                                                           |   |                    | 41,952    |   |                       |   | 55,538    |           |   |   |   |   |
| Granted                                                                                                                                                |   |                    | 389,923   |   |                       |   | 1,110,770 |           |   |   |   |   |
| Exercised                                                                                                                                              |   |                    | --        |   |                       |   | --        |           |   |   |   |   |
| Cancelled                                                                                                                                              |   |                    | (6,032    | )      |                       |   | --        |           |   |   |   |   |
|                                                                                                                                                   |   |                    |      |   |                       |   |      |           |   |   |   |   |
| Outstanding at December 31, 2008                                                                                                                       |   |                    | 881,005   |   |                       |   | 1,166,308 |           |   | $1.43 - $4.03 |   |
| Adjustment for the effect of stock dividends                                                                                                           |   |                    | 48,094    |   |                       |   | 108,316   |           |   |   |   |   |
| Granted                                                                                                                                                |   |                    | 206,500   |   |                       |   | 1,000,000 |           |   |   |   |   |
| Exercised                                                                                                                                              |   |                    | (63,814   | )      |                       |   | --        |           |   |   |   |   |
| Cancelled                                                                                                                                              |   |                    | (63,814   | )      |                       |   | --        |           |   |   |   |   |
|                                                                                                                                                   |   |                    |      |   |                       |   |      |           |   |   |   |   |
| Outstanding at December 31, 2009                                                                                                                       |   |                    | 1,007,971 |   |                       |   | 2,274,624 |           |   | $1.36 - $3.84 |   |
| Adjustment for the effect of stock dividends                                                                                                           |   |                    | 56,598    |   |                       |   | 163,731   |           |   |   |   |   |
| Granted                                                                                                                                                |   |                    | 221,600   |   |                       |   | 1,000,000 |           |   |   |   |   |
| Exercised                                                                                                                                              |   |                    | (97,609   | )      |                       |   | --        |           |   |   |   |   |
| Cancelled                                                                                                                                              |   |                    | -         |   |                       |   | --        |           |   |   |   |   |
|                                                                                                                                                   |   |                    |      |   |                       |   |      |           |   |   |   |   |
| Outstanding at December 31, 2010                                                                                                                       |   |                    | 1,188,560 |   |                       |   | 3,438,355 |           |   | $1.30 - $3.66 |   |
|                                                                                                                                                   |   |                    |      |   |                       |   |      |           |   |   |   |   |
| Exercisable at end of year                                                                                                                             |   |                    | 952,980   |   |                       |   | 2,438,355 |           |   | $1.30 - $3.66 |   |
|                                                                                                                                                   |   |                    |      |   |                       |   |      |           |   |   |   |   |
| Available options for future grant 2003 Stock Incentive Plan                                                                                           |   |                    | 817,478   |   |                       |   | 5         |           |   |   |   |   |
|                                                                                                                                                   |   |                    |      |   |                       |   |      |           |   |   |   |   |
| Weighted average contractual term of options outstanding at December 31, 2010                                                                          |   | 5.3 years               |      |   |                       |   |      |           |   |   |   |
|                                                                                                                                                   |   |                    |      |   |                       |   |      |           |   |   |   |   |
| Aggregated intrinsic value of options outstanding at December 31, 2010                                                                                 |   | $                       | -0-       |   |                       |   |      |           |   |   |   |   |
| (1) Class “C” shares are converted to Class “A” shares on a 10 to 1 ratio. The Option Price is based on Class A Common shares. |

----

|                                                                              |   | Number of      |    |   |         |          |
|-----------------------------------------------------------------------------------|--------|----------------|---------|--------|--------------|---------------|
|                                                                              |   | Class A Shares |    |   | Option Price |          |
| Outstanding at December 31, 2007                                                  |   |           | 8,610   |   |         | $3.57 - $4.82 |   |
| Granted                                                                           |   |           | 34,000  |   |         |          |   |   |
| Adjustment for the effect of stock dividends                                      |   |           | 2,131   |   |         |          |   |   |
|                                                                              |   |           |    |   |         |          |   |   |
| Outstanding at December 31, 2008                                                  |   |           | 44,741  |   |         | $1.34 - $4.59 |   |
| Granted                                                                           |   |           | 24,000  |   |         |          |   |   |
| Adjustment for the effect of stock dividends                                      |   |           | 3,437   |   |         |          |   |   |
|                                                                              |   |           |    |   |         |          |   |   |
| Outstanding at December 31, 2009                                                  |   |           | 72,178  |   |         | $1.28 - $4.37 |   |
| Granted                                                                           |   |           | 24,000  |   |         |          |   |   |
| Adjustment for the effect of stock dividends                                      |   |           | 4,809   |   |         |          |   |   |
|                                                                              |   |           |    |   |         |          |   |   |
| Outstanding at December 31, 2010                                                  |   |           | 100,987 |   |         | $1.22 - $4.16 |   |
| Exercisable at end of year                                                        |   |           | 75,786  |   |         | $1.22 - $4.16 |   |
|                                                                              |   |           |    |   |         |          |   |   |
| Available options for future grant 2006 Stock Incentive Plan                      |   |           | 26,642  |   |         |          |   |   |
|                                                                              |   |           |    |   |         |          |   |   |
| Weighted average contractual term of options outstanding at December 31, 2010     |   | 8.5 years      |    |   |         |          |   |
|                                                                              |   |           |    |   |         |          |   |   |
| Aggregated intrinsic value of options outstanding  at December 31, 2010 |   | $              | -0-     |   |         |          |   |   |

----

----

|                                                                                         |   | 2010      |        |
|----------------------------------------------------------------------------------------------|--------|-----------|-------------|
|                                                                                         |   | Life      |        |   | Cemetery/ |   |   |   |   |   | Reconciling |   |   |   |   |
|                                                                                         |   | Insurance |        |   | Mortuary |   |   | Mortgage |   |   | Items |   |   | Consolidated |   |
| Revenues:                                                                                    |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| From external sources:                                                                       |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue from customers                                                                       |   | $         | 38,528,437  |   |   | $ | 11,520,369 |   |   | $ | 98,164,113 |   |   | $ | -- |   |   | $ | 148,212,919 |   |
| Net investment income                                                                        |   |      | 14,738,200  |   |   |   | 63,574 |   |   |   | 2,992,312 |   |   |   | -- |   |   |   | 17,794,086 |   |
| Realized gains (losses) on investments and other assets                                      |   |      | 1,642,174   |   |   |   | (26,756 | ) |   |   | -- |   |   |   | -- |   |   |   | 1,615,418 |   |
| Other than temporary impairments                                                             |   |      | (673,981    | ) |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | (673,981 | ) |
| Other revenues                                                                               |   |      | 1,039,016   |   |   |   | 256,862 |   |   |   | 285,237 |   |   |   | -- |   |   |   | 1,581,115 |   |
| Intersegment revenues:                                                                       |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net investment income                                                                        |   |      | 6,817,008   |   |   |   | 1,678,096 |   |   |   | 244,578 |   |   |   | (8,739,682 | ) |   |   | -- |   |
| Total revenues                                                                               |   |      | 62,090,854  |   |   |   | 13,492,145 |   |   |   | 101,686,240 |   |   |   | (8,739,682 | ) |   |   | 168,529,557 |   |
| Expenses:                                                                                    |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Death and other policy benefits                                                              |   |      | 20,925,988  |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 20,925,988 |   |
| Increase in future policy benefits                                                           |   |      | 15,525,542  |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 15,525,542 |   |
| Amortization of deferred policy and preneed acquisition costs and value of business acquired |   |      | 5,572,297   |   |   |   | 372,562 |   |   |   | -- |   |   |   | -- |   |   |   | 5,944,859 |   |
| Depreciation                                                                                 |   |      | 559,999     |   |   |   | 631,281 |   |   |   | 620,652 |   |   |   | -- |   |   |   | 1,811,932 |   |
| General, administrative and other costs:                                                     |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intersegment                                                                                 |   |      | 24,000      |   |   |   | 109,128 |   |   |   | 185,147 |   |   |   | (318,275 | ) |   |   | -- |   |
| Provision for loan losses                                                                    |   |      | --          |   |   |   | -- |   |   |   | 5,404,645 |   |   |   | -- |   |   |   | 5,404,645 |   |
| Costs related to funding mortgage loans                                                      |   |      | --          |   |   |   | -- |   |   |   | 6,044,020 |   |   |   | -- |   |   |   | 6,044,020 |   |
| Other                                                                                        |   |      | 16,756,255  |   |   |   | 11,097,302 |   |   |   | 83,329,514 |   |   |   | -- |   |   |   | 111,183,071 |   |
| Interest expense:                                                                            |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intersegment                                                                                 |   |      | 686,384     |   |   |   | 1,792,479 |   |   |   | 5,942,544 |   |   |   | (8,421,407 | ) |   |   | -- |   |
| Other                                                                                        |   |      | 179,891     |   |   |   | 475,372 |   |   |   | 2,123,657 |   |   |   | -- |   |   |   | 2,778,920 |   |
| Total benefits and expenses                                                                  |   |      | 60,230,356  |   |   |   | 14,478,124 |   |   |   | 103,650,179 |   |   |   | (8,739,682 | ) |   |   | 169,618,977 |   |
| Earnings (losses) before income taxes                                                        |   | $         | 1,860,498   |   |   | $ | (985,979 | ) |   | $ | (1,963,939 | ) |   | $ | -- |   |   | $ | (1,089,420 | ) |
| Income tax (expense) benefit                                                                 |   |      | (97,410     | ) |   |   | -- |   |   |   | 756,206 |   |   |   | -- |   |   |   | 658,796 |   |
| Net earnings (losses)                                                                        |   | $         | 1,763,088   |   |   | $ | (985,979 | ) |   | $ | (1,207,733 | ) |   | $ | -- |   |   | $ | (430,624 | ) |
|                                                                                         |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets                                                                          |   | $         | 440,374,068 |   |   | $ | 111,798,118 |   |   | $ | 30,078,996 |   |   | $ | (116,860,777 | ) |   | $ | 465,390,405 |   |
|                                                                                         |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                                                     |   | $         | 391,848     |   |   | $ | 683,191 |   |   | $ | -- |   |   | $ | -- |   |   | $ | 1,075,039 |   |
|                                                                                         |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenditures for long-lived assets                                                           |   | $         | 220,417     |   |   | $ | 275,904 |   |   | $ | 363,667 |   |   | $ | -- |   |   | $ | 859,988 |   |

----

|                                                                                         |   | 2009      |        |
|----------------------------------------------------------------------------------------------|--------|-----------|-------------|
|                                                                                         |   | Life      |        |   | Cemetery/ |   |   |   |   |   | Reconciling |   |   |   |   |
|                                                                                         |   | Insurance |        |   | Mortuary |   |   | Mortgage |   |   | Items |   |   | Consolidated |   |
| Revenues:                                                                                    |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| From external sources:                                                                       |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue from customers                                                                       |   | $         | 38,413,329  |   |   | $ | 11,973,676 |   |   | $ | 144,860,399 |   |   | $ | -- |   |   | $ | 195,247,404 |   |
| Net investment income                                                                        |   |      | 15,869,380  |   |   |   | 72,833 |   |   |   | 3,386,687 |   |   |   | -- |   |   |   | 19,328,900 |   |
| Realized gains on investments and other assets                                               |   |      | 1,223,312   |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 1,223,312 |   |
| Other than temporary impairments                                                             |   |      | (326,000    | ) |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | (326,000 | ) |
| Other revenues                                                                               |   |      | 778,107     |   |   |   | 174,357 |   |   |   | 462,216 |   |   |   | -- |   |   |   | 1,414,680 |   |
| Intersegment revenues:                                                                       |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net investment income                                                                        |   |      | 5,040,934   |   |   |   | 1,092,056 |   |   |   | 216,110 |   |   |   | (6,349,100 | ) |   |   | -- |   |
| Total revenues                                                                               |   |      | 60,999,062  |   |   |   | 13,312,922 |   |   |   | 148,925,412 |   |   |   | (6,349,100 | ) |   |   | 216,888,296 |   |
| Expenses:                                                                                    |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Death and other policy benefits                                                              |   |      | 20,681,268  |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 20,681,268 |   |
| Increase in future policy benefits                                                           |   |      | 15,238,380  |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 15,238,380 |   |
| Amortization of deferred policy and preneed acquisition costs and value of business acquired |   |      | 6,756,531   |   |   |   | 403,957 |   |   |   | -- |   |   |   | -- |   |   |   | 7,160,488 |   |
| Depreciation                                                                                 |   |      | 628,783     |   |   |   | 780,253 |   |   |   | 547,179 |   |   |   | -- |   |   |   | 1,956,215 |   |
| General, administrative and other costs:                                                     |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intersegment                                                                                 |   |      | 24,000      |   |   |   | 65,064 |   |   |   | 236,487 |   |   |   | (325,551 | ) |   |   | -- |   |
| Provision for loan losses                                                                    |   |      | --          |   |   |   | -- |   |   |   | 19,547,162 |   |   |   | -- |   |   |   | 19,547,162 |   |
| Costs related to funding mortgage loans                                                      |   |      | --          |   |   |   | -- |   |   |   | 10,041,731 |   |   |   | -- |   |   |   | 10,041,731 |   |
| Other                                                                                        |   |      | 16,939,350  |   |   |   | 10,923,612 |   |   |   | 104,726,271 |   |   |   | -- |   |   |   | 132,589,233 |   |
| Interest expense:                                                                            |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intersegment                                                                                 |   |      | 764,554     |   |   |   | 1,019,828 |   |   |   | 4,239,167 |   |   |   | (6,023,549 | ) |   |   | -- |   |
| Other                                                                                        |   |      | 400,299     |   |   |   | 247,954 |   |   |   | 2,677,908 |   |   |   | -- |   |   |   | 3,326,161 |   |
| Total benefits and expenses                                                                  |   |      | 61,433,165  |   |   |   | 13,440,668 |   |   |   | 142,015,905 |   |   |   | (6,349,100 | ) |   |   | 210,540,638 |   |
| Earnings (losses) before income taxes                                                        |   | $         | (434,103    | ) |   | $ | (127,746 | ) |   | $ | 6,909,507 |   |   | $ | -- |   |   | $ | 6,347,658 |   |
| Income tax (expense) benefit                                                                 |   |      | 125,408     |   |   |   | -- |   |   |   | (2,699,186 | ) |   |   | -- |   |   |   | (2,573,778 | ) |
| Net earnings (losses)                                                                        |   | $         | (308,695    | ) |   | $ | (127,746 | ) |   | $ | 4,210,321 |   |   | $ | -- |   |   | $ | 3,773,880 |   |
|                                                                                         |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets                                                                          |   | $         | 435,412,810 |   |   | $ | 101,357,826 |   |   | $ | 39,480,787 |   |   | $ | (105,674,525 | ) |   | $ | 470,576,898 |   |
|                                                                                         |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                                                     |   | $         | 391,848     |   |   | $ | 683,191 |   |   | $ | -- |   |   | $ | -- |   |   | $ | 1,075,039 |   |
|                                                                                         |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenditures for long-lived assets                                                           |   | $         | 134,948     |   |   | $ | 139,259 |   |   | $ | 462,003 |   |   | $ | -- |   |   | $ | 736,210 |   |

----

|                                                                                         |   | 2008      |        |
|----------------------------------------------------------------------------------------------|--------|-----------|-------------|
|                                                                                         |   | Life      |        |   | Cemetery/ |   |   |   |   |   | Reconciling |   |   |   |   |
|                                                                                         |   | Insurance |        |   | Mortuary |   |   | Mortgage |   |   | Items |   |   | Consolidated |   |
| Revenues:                                                                                    |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| From external sources:                                                                       |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Revenue from customers                                                                       |   | $         | 35,981,297  |   |   | $ | 12,725,930 |   |   | $ | 143,411,459 |   |   | $ | -- |   |   | $ | 192,118,686 |   |
| Net investment income                                                                        |   |      | 16,743,849  |   |   |   | 603,959 |   |   |   | 10,699,354 |   |   |   | -- |   |   |   | 28,047,162 |   |
| Realized gains (losses) on investments and other assets                                      |   |      | 1,109,268   |   |   |   | (91,079 | ) |   |   | -- |   |   |   | -- |   |   |   | 1,018,189 |   |
| Other than temporary impairments                                                             |   |      | (2,751,904  | ) |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | (2,751,904 | ) |
| Other revenues                                                                               |   |      | 386,354     |   |   |   | 177,997 |   |   |   | 451,019 |   |   |   | -- |   |   |   | 1,015,370 |   |
| Intersegment revenues:                                                                       |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net investment income                                                                        |   |      | 4,818,907   |   |   |   | 120,771 |   |   |   | 358,455 |   |   |   | (5,298,133 | ) |   |   | -- |   |
| Total revenues                                                                               |   |      | 56,287,771  |   |   |   | 13,537,578 |   |   |   | 154,920,287 |   |   |   | (5,298,133 | ) |   |   | 219,447,503 |   |
| Expenses:                                                                                    |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Death and other policy benefits                                                              |   |      | 19,195,170  |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 19,195,170 |   |
| Increase in future policy benefits                                                           |   |      | 13,709,135  |   |   |   | -- |   |   |   | -- |   |   |   | -- |   |   |   | 13,709,135 |   |
| Amortization of deferred policy and preneed acquisition costs and value of business acquired |   |      | 5,586,848   |   |   |   | 423,425 |   |   |   | -- |   |   |   | -- |   |   |   | 6,010,273 |   |
| Depreciation                                                                                 |   |      | 663,600     |   |   |   | 863,163 |   |   |   | 534,539 |   |   |   | -- |   |   |   | 2,061,302 |   |
| General, administrative and other costs:                                                     |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intersegment                                                                                 |   |      | 24,000      |   |   |   | 65,064 |   |   |   | 257,409 |   |   |   | (346,473 | ) |   |   | -- |   |
| Provision for loan losses                                                                    |   |      | --          |   |   |   | -- |   |   |   | 10,552,074 |   |   |   | -- |   |   |   | 10,552,074 |   |
| Costs related to funding mortgage loans                                                 |   |      | --          |   |   |   | -- |   |   |   | 8,944,945 |   |   |   | -- |   |   |   | 8,944,945 |   |
| Other                                                                                        |   |      | 18,578,435  |   |   |   | 11,882,328 |   |   |   | 120,334,876 |   |   |   | -- |   |   |   | 150,795,639 |   |
| Interest expense:                                                                            |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Intersegment                                                                                 |   |      | 279,489     |   |   |   | 171,057 |   |   |   | 4,501,114 |   |   |   | (4,951,660 | ) |   |   | -- |   |
| Other                                                                                        |   |      | 191,927     |   |   |   | 256,728 |   |   |   | 6,999,799 |   |   |   | -- |   |   |   | 7,448,454 |   |
| Total benefits and expenses                                                                  |   |      | 58,228,604  |   |   |   | 13,661,765 |   |   |   | 152,124,756 |   |   |   | (5,298,133 | ) |   |   | 218,716,992 |   |
| Earnings (losses) before income taxes                                                        |   | $         | (1,940,833  | ) |   | $ | (124,187 | ) |   | $ | 2,795,531 |   |   | $ | -- |   |   | $ | 730,511 |   |
| Income tax (expense) benefit                                                                 |   |      | 976,659     |   |   |   | 6,829 |   |   |   | (1,139,146 | ) |   |   | -- |   |   |   | (155,658 | ) |
| Net earnings (losses)                                                                        |   | $         | (964,174    | ) |   | $ | (117,358 | ) |   | $ | 1,656,385 |   |   | $ | -- |   |   | $ | 574,853 |   |
|                                                                                         |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Identifiable assets                                                                          |   | $         | 421,550,749 |   |   | $ | 64,737,730 |   |   | $ | 26,145,713 |   |   | $ | (70,629,667 | ) |   | $ | 441,804,525 |   |
|                                                                                         |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Goodwill                                                                                     |   | $         | 391,848     |   |   | $ | 683,191 |   |   | $ | -- |   |   | $ | -- |   |   | $ | 1,075,039 |   |
|                                                                                         |   |      |        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Expenditures for long-lived assets                                                           |   | $         | 308,226     |   |   | $ | 372,511 |   |   | $ | 643,112 |   |   | $ | -- |   |   | $ | 1,323,849 |   |

----

----

|   |
|--------|

| Level 2: Financial assets and financial liabilities whose values are based on the following: |
|----------------------------------------------------------------------------------------------|

----

|   |
|--------|

|                                                               |   |   |         |   | Quoted Prices    |   |      |        |   |   |         |   |
|--------------------------------------------------------------------|--------|--------|--------------|--------|------------------|--------|-----------|-------------|--------|--------|--------------|--------|
|                                                               |   |   |         |   | in Active        |   |      | Significant |   |   | Significant  |   |
|                                                               |   |   |         |   | Markets for      |   |      | Observable  |   |   | Unobservable |   |
|                                                               |   |   |         |   | Identical Assets |   |      | Inputs      |   |   | Inputs       |   |
|                                                               |   | Total  |         |   | (Level 1)        |   |      | (Level 2)   |   |   | (Level 3)    |   |
| Assets accounted for at fair value on a recurring basis            |   |   |         |   |             |   |      |        |   |   |         |   |
| Non-redeemable preferred stock                                     |   | $      | 16,058       |   |             | $      | 16,058    |        |   | $      | -            |   |   | $ | - |   |
| Common stock                                                       |   |   | 6,768,585    |   |             |   | 6,768,585 |        |   |   | -            |   |   |   | - |   |
| Total securities available for sale                                |   |   | 6,784,643    |   |             |   | 6,784,643 |        |   |   | -            |   |   |   | - |   |
| Restricted assets of cemeteries and mortuaries                     |   |   | 545,433      |   |             |   | 545,433   |        |   |   |         |   |   |   |   |   |
| Cemetery perpetual care trust investments                          |   |   | 1,454,694    |   |             |   | 1,454,694 |        |   |   | -            |   |   |   | - |   |
| Derivatives - interest rate lock commitments                       |   |   | 1,024,587    |   |             |   | -         |        |   |   | -            |   |   |   | 1,024,587 |   |
| Total assets accounted for at fair value on a recurring basis      |   | $      | 9,809,357    |   |             | $      | 8,784,770 |        |   | $      | -            |   |   | $ | 1,024,587 |   |
|                                                               |   |   |         |   |             |   |      |        |   |   |         |   |   |   |   |   |
| Liabilities accounted for at fair value                            |   |   |         |   |             |   |      |        |   |   |         |   |   |   |   |   |
| on a recurring basis                                               |   |   |         |   |             |   |      |        |   |   |         |   |   |   |   |   |
| Policyholder account balances                                      |   | $      | (52,340,807  | )      |             | $      | -         |        |   | $      | -            |   |   | $ | (52,340,807 | ) |
| Future policy benefits - annuities                                 |   |   | (65,936,445  | )      |             |   | -         |        |   |   | -            |   |   |   | (65,936,445 | ) |
| Derivatives  - bank loan interest rate swaps             |   |   | (116,533     | )      |             |   | -         |        |   |   | -            |   |   |   | (116,533 | ) |
|   - call options                                         |   |   | (157,319     | )      |             |   | (157,319  | )           |   |   | -            |   |   |   | - |   |
|   - interest rate lock commitments                       |   |   | (151,528     | )      |             |   | -         |        |   |   | -            |   |   |   | (151,528 | ) |
| Total liabilities accounted for at fair value on a recurring basis |   | $      | (118,702,632 | )      |             | $      | (157,319  | )           |   | $      | -            |   |   | $ | (118,545,313 | ) |

|                                          |   | PolicyholderAccount Balances |        |   | Future PolicyBenefits - Annuities |   |        | Interest RateLockCommitments |   |   | Bank LoanInterest RateSwaps |   |
|-----------------------------------------------|--------|------------------------------|-------------|--------|-----------------------------------|--------|-------------|------------------------------|--------|--------|-----------------------------|--------|
|                                          |   |                         |        |   |                              |   |        |                         |   |   |                        |   |
| Balance - December 31, 2009                   |   | $                            | (54,356,491 | )      |                              | $      | (61,407,257 | )                            |   | $      | 1,554,711                   |   |   | $ | (101,206 | ) |
|                                          |   |                         |        |   |                              |   |        |                         |   |   |                        |   |   |   |   |   |
| Total Losses (Gains):                         |   |                         |        |   |                              |   |        |                         |   |   |                        |   |   |   |   |   |
|                                          |   |                         |        |   |                              |   |        |                         |   |   |                        |   |   |   |   |   |
| Included in earnings                          |   |                         | 2,015,684   |   |                              |   | (4,529,188  | )                            |   |   | -                           |   |   |   | - |   |
|                                          |   |                         |        |   |                              |   |        |                         |   |   |                        |   |   |   |   |   |
| Included in other comprehensive income (loss) |   |                         | -           |   |                              |   | -           |                         |   |   | (681,652                    | )      |   |   | (15,327 | ) |
|                                          |   |                         |        |   |                              |   |        |                         |   |   |                        |   |   |   |   |   |
| Balance - December 31, 2010                   |   | $                            | (52,340,807 | )      |                              | $      | (65,936,445 | )                            |   | $      | 873,059                     |   |   | $ | (116,533 | ) |

----

|   |
|--------|

|                                                             |   |   |      |   | Quoted Prices    |   |   |        |   |   |         |   |
|------------------------------------------------------------------|--------|--------|-----------|--------|------------------|--------|--------|-------------|--------|--------|--------------|--------|
|                                                             |   |   |      |   | in Active        |   |   | Significant |   |   | Significant  |   |
|                                                             |   |   |      |   | Markets for      |   |   | Observable  |   |   | Unobservable |   |
|                                                             |   |   |      |   | Identical Assets |   |   | Inputs      |   |   | Inputs       |   |
|                                                             |   | Total  |      |   | (Level 1)        |   |   | (Level 2)   |   |   | (Level 3)    |   |
| Assets accounted for at fair value on a nonrecurring basis       |   |   |      |   |             |   |   |        |   |   |         |   |
| Investment in securities held-to-maturity                        |   | $      | 346,219   |   |             | $      | -      |        |   | $      | 346,219      |   |   | $ | - |   |
| Mortgage loans on real estate                                    |   |   | 523,971   |   |             |   | -      |        |   |   | -            |   |   |   | 523,971 |   |
| Other real estate owned held for investment                      |   |   | 2,158,110 |   |             |   | -      |        |   |   | -            |   |   |   | 2,158,110 |   |
| Other real estate owned held for sale                            |   |   | 1,444,000 |   |             |   | -      |        |   |   | -            |   |   |   | 1,444,000 |   |
| Total assets accounted for at fair value on a nonrecurring basis |   | $      | 4,472,300 |   |             | $      | -      |        |   | $      | 346,219      |   |   | $ | 4,126,081 |   |

|                                                               |   |   |         |   | Quoted Pricesin ActiveMarkets forIdentical Assets |   |      | SignificantObservableInputs |   |   | SignificantUnobservable Inputs |   |
|--------------------------------------------------------------------|--------|--------|--------------|--------|---------------------------------------------------|--------|-----------|-----------------------------|--------|--------|--------------------------------|--------|
|                                                               |   | Total  |         |   | (Level 1)                                         |   |      | (Level 2)                   |   |   | (Level 3)                      |   |
| Assets accounted for at fair value on a recurring basis            |   |   |         |   |                                              |   |      |                        |   |   |                           |   |
| Non-redeemable preferred stock                                     |   | $      | 15,220       |   |                                              | $      | 15,220    |                        |   | $      | -                              |   |   | $ | - |   |
| Common stock                                                       |   |   | 5,771,394    |   |                                              |   | 5,771,394 |                        |   |   | -                              |   |   |   | - |   |
| Bonds                                                              |   |   | 1,149,523    |   |                                              |   | 1,149,523 |                        |   |   | -                              |   |   |   | - |   |
| Total securities available for sale                                |   |   | 6,936,137    |   |                                              |   | 6,936,137 |                        |   |   | -                              |   |   |   | - |   |
| Restricted assets of cemeteries and mortuaries                     |   |   | 492,852      |   |                                              |   | 492,852   |                        |   |   |                           |   |   |   |   |   |
| Cemetery perpetual care trust investments                          |   |   | 1,104,046    |   |                                              |   | 1,104,046 |                        |   |   | -                              |   |   |   | - |   |
| Derivative-interest rate lock commitments                          |   |   | 1,770,173    |   |                                              |   |      |                        |   |   | -                              |   |   |   | 1,770,173 |   |
| Total assets accounted for at fair value on a recurring basis      |   | $      | 10,303,208   |   |                                              | $      | 8,533,035 |                        |   | $      | -                              |   |   | $ | 1,770,173 |   |
|                                                               |   |   |         |   |                                              |   |      |                        |   |   |                           |   |   |   |   |   |
| Liabilities accounted for at fair value                            |   |   |         |   |                                              |   |      |                        |   |   |                           |   |   |   |   |   |
| on a recurring basis                                               |   |   |         |   |                                              |   |      |                        |   |   |                           |   |   |   |   |   |
| Policyholder account balances                                      |   | $      | (54,356,491  | )      |                                              | $      | -         |                        |   | $      | -                              |   |   | $ | (54,356,491 | ) |
| Future policy benefits - annuities                                 |   |   | (61,407,257  | )      |                                              |   | -         |                        |   |   | -                              |   |   |   | (61,407,257 | ) |
| Derivative - bank loan interest rate swaps                         |   |   | (101,251     | )      |                                              |   | -         |                        |   |   | -                              |   |   |   | (101,251 | ) |
|    - call options                                        |   |   | (134,492     | )      |                                              |   | (134,492  | )                           |   |   | -                              |   |   |   | - |   |
|    - interest rate lock commitments                      |   |   | (215,481     | )      |                                              |   | -         |                        |   |   | -                              |   |   |   | (215,481 | ) |
| Total liabilities accounted for at fair value on a recurring basis |   | $      | (116,214,972 | )      |                                              | $      | (134,492  | )                           |   | $      | -                              |   |   | $ | (116,080,480 | ) |

----

|   |
|--------|

|                                          |   | PolicyholderAccount Balances |        |   | Future PolicyBenefits - Annuities |   |        | Interest RateLockCommitments |   |   | Bank LoanInterest RateSwaps |   |
|-----------------------------------------------|--------|------------------------------|-------------|--------|-----------------------------------|--------|-------------|------------------------------|--------|--------|-----------------------------|--------|
|                                          |   |                         |        |   |                              |   |        |                         |   |   |                        |   |
| Balance - December 31, 2008                   |   | $                            | (50,306,536 | )      |                              | $      | (62,045,380 | )                            |   | $      | 362,231                     |   |   | $ | (167,483 | ) |
|                                          |   |                         |        |   |                              |   |        |                         |   |   |                        |   |   |   |   |   |
| Total Losses (Gains):                         |   |                         |        |   |                              |   |        |                         |   |   |                        |   |   |   |   |   |
|                                          |   |                         |        |   |                              |   |        |                         |   |   |                        |   |   |   |   |   |
| Included in earnings                          |   |                         | (4,049,955  | )      |                              |   | 638,123     |                         |   |   | -                           |   |   |   | - |   |
|                                          |   |                         |        |   |                              |   |        |                         |   |   |                        |   |   |   |   |   |
| Included in other comprehensive income (loss) |   |                         | -           |   |                              |   | -           |                         |   |   | 1,192,480                   |   |   |   | 66,277 |   |
|                                          |   |                         |        |   |                              |   |        |                         |   |   |                        |   |   |   |   |   |
| Balance - December 31, 2009                   |   | $                            | (54,356,491 | )      |                              | $      | (61,407,257 | )                            |   | $      | 1,554,711                   |   |   | $ | (101,206 | ) |

|                                                             |   |   |      |   | Quoted Prices    |   |      |        |   |   |         |   |
|------------------------------------------------------------------|--------|--------|-----------|--------|------------------|--------|-----------|-------------|--------|--------|--------------|--------|
|                                                             |   |   |      |   | in Active        |   |      | Significant |   |   | Significant  |   |
|                                                             |   |   |      |   | Markets for      |   |      | Observable  |   |   | Unobservable |   |
|                                                             |   |   |      |   | Identical Assets |   |      | Inputs      |   |   | Inputs       |   |
|                                                             |   | Total  |      |   | (Level 1)        |   |      | (Level 2)   |   |   | (Level 3)    |   |
| Assets accounted for at fair value on a nonrecurring basis       |   |   |      |   |             |   |      |        |   |   |         |   |
| Investment in securities held-to-maturity                        |   | $      | 2,618,744 |   |             | $      | 2,111,967 |        |   | $      | 506,777      |   |   | $ | - |   |
| Mortgage loans on real estate                                    |   |   | 1,003,624 |   |             |   | -         |        |   |   | -            |   |   |   | 1,003,624 |   |
| Other real estate owned held for investment                      |   |   | 2,712,537 |   |             |   | -         |        |   |   | -            |   |   |   | 2,712,537 |   |
| Other real estate owned held for sale                            |   |   | 1,712,900 |   |             |   | -         |        |   |   | -            |   |   |   | 1,712,900 |   |
| Total assets accounted for at fair value on a nonrecurring basis |   | $      | 8,047,805 |   |             | $      | 2,111,967 |        |   | $      | 506,777      |   |   | $ | 5,429,061 |   |

----

|                                                                                             |   | December 31, |     |
|--------------------------------------------------------------------------------------------------|--------|--------------|----------|
|                                                                                             |   | 2010         |     |   | 2009 |   |
| Unrealized gains (losses) on available for-sale securities                                       |   | $            | (514,307 | ) |   | $ | (154,317 | ) |
| Reclassification adjustment for net realized gains in net income                                 |   |         | 601,336  |   |   |   | 539,460 |   |
| Net unrealized gains (losses) before taxes                                                       |   |         | 87,029   |   |   |   | 385,143 |   |
| Tax (expense) benefit                                                                            |   |         | (32,132  | ) |   |   | (39,697 | ) |
| Net                                                                                              |   |         | 54,897   |   |   |   | 345,446 |   |
| Potential unrealized gains (losses) for derivative bank loans (interest rate swaps) before taxes |   |         | (15,281  | ) |   |   | 66,277 |   |
| Tax (expense) benefit                                                                            |   |         | 5,195    |   |   |   | (22,534 | ) |
| Net                                                                                              |   |         | (10,086  | ) |   |   | 43,743 |   |
| Potential unrealized gains (losses) for derivative mortgage loans before taxes                   |   |         | (681,652 | ) |   |   | 1,192,481 |   |
| Tax (expense) benefit                                                                            |   |         | 231,762  |   |   |   | (405,444 | ) |
| Net                                                                                              |   |         | (449,890 | ) |   |   | 787,037 |   |
| Other comprehensive income                                                                       |   | $            | (405,079 | ) |   | $ | 1,176,226 |   |

|                                                                         |   | BeginningBalanceDecember 31, 2009 |      |   | Change forthe period |   |     | EndingBalanceDecember 31, 2010 |   |
|------------------------------------------------------------------------------|--------|-----------------------------------|-----------|--------|----------------------|--------|----------|--------------------------------|--------|
| Unrealized net gains on available- for-sale securities and trust investments |   | $                                 | 634,029   |   |                 | $      | 54,911   |                           |   | $ | 688,940 |   |
| Unrealized gains on derivative mortgage loans                                |   |                              | 1,026,109 |   |                 |   | (449,891 | )                              |   |   | 576,218 |   |

| Unrealized gains ( losses) on  derivative bank loan interest rate swaps |   |   | (66,811   | )      |   |   | (10,101  | ) |   |   | (76,912   | )      |
|-----------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|----------|---|--------|--------|-----------|--------|
| Other comprehensive income                                                        |   | $      | 1,593,327 |   |   | $      | (405,081 | ) |   | $      | 1,188,246 |   |

|                                                                         |   | BeginningBalanceDecember 31, 2008 |     |   | Change forthe period |   |      | EndingBalanceDecember 31, 2009 |   |
|------------------------------------------------------------------------------|--------|-----------------------------------|----------|--------|----------------------|--------|-----------|--------------------------------|--------|
|                                                                         |   |                              |     |   |                 |   |      |                           |   |
| Unrealized net gains on available- for-sale securities and trust investments |   | $                                 | 288,583  |   |                 | $      | 345,446   |                           |   | $ | 634,029 |   |
| Unrealized gains on derivative mortgage loans                                |   |                              | 239,072  |   |                 |   | 787,037   |                           |   |   | 1,026,109 |   |
| Unrealized gains (losses) on derivative bank loan interest rate swaps        |   |                              | (110,554 | )      |                 |   | 43,743    |                           |   |   | (66,811 | ) |
| Other comprehensive income                                                   |   | $                                 | 417,101  |   |                 | $      | 1,176,226 |                           |   | $ | 1,593,327 |   |

----

| 20) | Derivative Commitments |
|-----|------------------------|

----

| 20) | Derivative Commitments (Continued) |
|-----|------------------------------------|

|                                             | Fair Value of Derivative Instruments |
|--------------------------------------------------|--------------------------------------|
|                                             | Asset Derivatives                    |   | Liability Derivatives |
|                                             | December 31, 2010                    |   | December 31, 2009 |   | December 31, 2010 |   | December 31, 2009 |
|                                             | BalanceSheetLocation                 |   |  FairValue |   | BalanceSheetLocation |   | FairValue |   |   | BalanceSheetLocation |   | FairValue |   | BalanceSheetLocation |   | FairValue |
| Derivatives designated as hedging instruments:   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate lock and forward sales commitments | other assets                         |   |  $1,024,587 |   | other assets |   |  $  1,770,193 |   |   | Other liabilities |   |  $   151,528 |   | Other liabilities |   |  $   215,481 |
| Call Options                                     | --                                   |   | -- |   | -- |   | -- |   |   | Other liabilities |   |       157,319 |   | Other liabilities |   |       134,492 |
| Interest rate swaps                              | --                                   |   |  -- |   | -- |   |  -- |   |   | Bank loans payable |   |       116,532 |   | Bank loans payable |   |       101,206 |
| Total                                            |                                 |   |  $1,024,587 |   |   |   |  $  1,770,193 |   |   |   |   |  $   425,379 |   |   |   |  $   451,179 |

|                                          |   | Gross Amount Gain (Loss) Recognized in OCI |    |
|-----------------------------------------------|--------|--------------------------------------------|---------|
|                                          |   | Years ended December 31,                   |    |
| Derivative - Cash Flow Hedging Relationships: |   | 2010                                       |    |   | 2009 |   |
| Interest Rate Lock Commitments                |   | $                                          | 681,652 |   |   | $ | 1,192,481 |   |
| Interest Rate Swaps                           |   |                                       | (15,281 | ) |   |   | 66,277 |   |
| Call Options                                  |   |                                       | 42,999  |   |   |   | (42,999 | ) |
| Total                                         |   | $                                          | 709,370 |   |   | $ | 1,215,759 |   |

----

|                                                   |   | 2010               |       |
|--------------------------------------------------------|--------|--------------------|------------|
|                                                   |   | Three Months Ended |       |
|                                                   |   | March 31           |       |   | June 30 |   |   | September 30 |   |   | December 31 |   |
| Revenues                                               |   | $                  | 37,971,547 |   |   | $ | 43,044,567 |   |   | $ | 45,974,697 |   |   | $ | 41,538,745 |   |
| Benefits and expenses                                  |   |               | 39,644,461 |   |   |   | 42,959,786 |   |   |   | 45,161,511 |   |   |   | 41,853,218 |   |
| Earnings before income taxes                           |   |               | (1,672,914 | ) |   |   | 84,781 |   |   |   | 813,186 |   |   |   | (314,473 | ) |
| Income tax expense                                     |   |               | 721,681    |   |   |   | 334,638 |   |   |   | (309,757 | ) |   |   | (87,766 | ) |
| Net earnings (loss)                                    |   |               | (951,233   | ) |   |   | 419,419 |   |   |   | 503,429 |   |   |   | (402,239 | ) |
| Net earnings (loss) per common share                   |   | $                  | (0.12      | ) |   | $ | 0.05 |   |   | $ | 0.06 |   |   | $ | (0.05 | ) |
| Net earnings (loss) per common share assuming dilution |   | $                  | (0.11      | ) |   | $ | 0.05 |   |   | $ | 0.06 |   |   | $ | (0.05 | ) |

|                                                   |   | 2009               |       |
|--------------------------------------------------------|--------|--------------------|------------|
|                                                   |   | Three Months Ended |       |
|                                                   |   | March 31           |       |   | June 30 |   |   | September 30 |   |   | December 31 |   |
| Revenues                                               |   | $                  | 59,283,642 |   |   | $ | 57,618,727 |   |   | $ | 48,246,597 |   |   | $ | 51,739,330 |   |
| Benefits and expenses                                  |   |               | 54,343,739 |   |   |   | 53,134,358 |   |   |   | 48,180,111 |   |   |   | 54,882,430 |   |
| Earnings before income taxes                           |   |               | 4,939,903  |   |   |   | 4,484,369 |   |   |   | 66,486 |   |   |   | (3,143,100 | ) |
| Income tax expense                                     |   |               | 1,706,893  |   |   |   | 1,393,980 |   |   |   | 3,437 |   |   |   | (530,532 | ) |
| Net earnings (loss)                                    |   |               | 3,233,010  |   |   |   | 3,090,389 |   |   |   | 63,049 |   |   |   | (2,612,568 | ) |
| Net earnings (loss) per common share                   |   | $                  | 0.40       |   |   | $ | 0.38 |   |   | $ | 0.01 |   |   | $ | (0.33 | ) |
| Net earnings (loss) per common share assuming dilution |   | $                  | 0.40       |   |   | $ | 0.38 |   |   | $ | 0.01 |   |   | $ | (0.33 | ) |

|                                                   |   | 2008               |       |
|--------------------------------------------------------|--------|--------------------|------------|
|                                                   |   | Three Months Ended |       |
|                                                   |   | March 31           |       |   | June 30 |   |   | September 30 |   |   | December 31 |   |
| Revenues                                               |   | $                  | 53,288,946 |   |   | $ | 60,373,128 |   |   | $ | 53,084,962 |   |   | $ | 52,700,468 |   |
| Benefits and expenses                                  |   |               | 51,344,011 |   |   |   | 57,285,880 |   |   |   | 53,813,127 |   |   |   | 56,273,975 |   |
| Earnings before income taxes                           |   |               | 1,944,935  |   |   |   | 3,087,248 |   |   |   | (728,165 | ) |   |   | (3,573,507 | ) |
| Income tax expense                                     |   |               | 569,479    |   |   |   | 986,615 |   |   |   | 39,877 |   |   |   | (1,440,313 | ) |
| Net earnings (loss)                                    |   |               | 1,375,456  |   |   |   | 2,100,633 |   |   |   | (768,042 | ) |   |   | (2,133,194 | ) |
| Net earnings (loss) per common share                   |   | $                  | 0.17       |   |   | $ | 0.26 |   |   | $ | (0.09 | ) |   | $ | (0.27 | ) |
| Net earnings (loss) per common share assuming dilution |   | $                  | 0.17       |   |   | $ | 0.26 |   |   | $ | (0.09 | ) |   | $ | (0.27 | ) |

----

|   | · | Pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of assets of the Company,  |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the board of directors of the Company, and |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company's assets that could have a material effect on the financial statements. |
|--------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Name                   |   | Age    |   | Position with the Company                             |
|------------------------|--------|--------|--------|-------------------------------------------------------|
|                   |   |   |   |                                                  |
| George R. Quist        |   | 90     |   | Chairman of the Board and Chief Executive Officer     |
|                   |   |   |   |                                                  |
| Scott M. Quist         |   | 57     |   | President, Chief Operation Officer and Director       |
|                   |   |   |   |                                                  |
| Stephen M. Sill        |   | 65     |   | Vice President, Treasurer and Chief Financial Officer |
|                   |   |   |   |                                                  |
| J. Lynn Beckstead, Jr. |   | 57     |   | Vice President Mortgage Operations and Director       |
|                   |   |   |   |                                                  |
| Christie Q. Overbaugh  |   | 62     |   | Senior Vice President of Internal Operations          |
|                   |   |   |   |                                                  |
| Jeffrey R. Stephens    |   | 57     |   | General Counsel and Corporate Secretary               |
|                   |   |   |   |                                                  |
| Charles L. Crittenden  |   | 90     |   | Director                                              |
|                   |   |   |   |                                                  |
| Robert G. Hunter       |   | 51     |   | Director                                              |
|                   |   |   |   |                                                  |
| H. Craig Moody         |   | 59     |   | Director                                              |
|                   |   |   |   |                                                  |
| Norman G. Wilbur       |   | 72     |   | Director                                              |

----

----

----

----

| Name andPrincipal Position |   | Year   |   | Salary($) |    |   | Bonus ($) |   |    | Options Awards($) |   |   | Non-Equity Incentive Plan Compen-sation($) |   |   | Change in Pension Value Non-qualified Deferred Compensation Earnings (2)($) |   |   | All Other Compen-sation (3)($) |   |   | Total($) |   |
|----------------------------|--------|--------|--------|-----------|---------|--------|----------------|--------|---------|-------------------|--------|--------|--------------------------------------------|--------|--------|-----------------------------------------------------------------------------|--------|--------|--------------------------------|--------|--------|----------|--------|
| George R. Quist(1)         |   | 2010   |   | $         | 269,013 |   |           | $      | 52,405  |              |   |   | --                                         |   |   |                                                                        | --     |   |                           | $      | -      |     |   | $ | 11,307 |   |   | $ | 332,725 |   |
| Chairman of the            |   | 2009   |   |      | 252,513 |   |           |   | 51,580  |              |   |   | --                                         |   |   |                                                                        | --     |   |                           |   | -      |     |   |   | 11,252 |   |   |   | 315,345 |   |
| Board and Chief            |   | 2008   |   |      | 236,013 |   |           |   | 50,755  |              |   |   | --                                         |   |   |                                                                        | --     |   |                           |   | -      |     |   |   | 10,959 |   |   |   | 297,727 |   |
| Executive Officer          |   |   |   |      |    |   |           |   |    |              |   |   |                                       |   |   |                                                                        |   |   |                           |   |   |     |   |   |   |   |   |   |   |   |
|                       |   |   |   |      | -       |   |           |   |    |              |   |   |                                       |   |   |                                                                        |   |   |                           |   |   |     |   |   |   |   |   |   |   |   |
| Scott M. Quist(1)          |   | 2010   |   | $         | 383,317 |   |           | $      | 93,950  |              |   |   | --                                         |   |   |                                                                        | --     |   |                           | $      | -      |     |   | $ | 33,860 |   |   | $ | 511,127 |   |
| President and Chief        |   | 2009   |   |      | 357,317 |   |           |   | 92,650  |              |   |   | --                                         |   |   |                                                                        | --     |   |                           |   | -      |     |   |   | 32,846 |   |   |   | 482,813 |   |
| Operating Officer          |   | 2008   |   |      | 332,400 |   |           |   | 91,350  |              |   |   | --                                         |   |   |                                                                        | --     |   |                           |   | -      |     |   |   | 32,791 |   |   |   | 456,541 |   |
|                       |   |   |   |      |    |   |           |   |    |              |   |   |                                       |   |   |                                                                        |   |   |                           |   |   |     |   |   |   |   |   |   |   |   |
| Stephen M. Sill            |   | 2010   |   | $         | 144,000 |   |           | $      | 13,213  |              |   |   | --                                         |   |   |                                                                        | --     |   |                           | $      | -      |     |   | $ | 17,064 |   |   | $ | 174,277 |   |
| Vice President,            |   | 2009   |   |      | 138,000 |   |           |   | 11,413  |              |   |   | --                                         |   |   |                                                                        | --     |   |                           |   | -      |     |   |   | 17,074 |   |   |   | 166,487 |   |
| Treasurer and Chief        |   | 2008   |   |      | 131,969 |   |           |   | 11,113  |              |   |   | --                                         |   |   |                                                                        | --     |   |                           |   | -      |     |   |   | 17,074 |   |   |   | 160,156 |   |
| Financial Officer          |   |   |   |      |    |   |           |   |    |              |   |   |                                       |   |   |                                                                        |   |   |                           |   |   |     |   |   |   |   |   |   |   |   |
|                       |   |   |   |      |    |   |           |   |    |              |   |   |                                       |   |   |                                                                        |   |   |                           |   |   |     |   |   |   |   |   |   |   |   |
| J. Lynn Beckstead, Jr.     |   | 2010   |   | $         | 237,583 |   |           | $      | 21,900  |              |   |   | --                                         |   |   |                                                                        | --     |   |                           | $      | -      |     |   | $ | 22,699 |   |   | $ | 282,182 |   |
| Vice President of          |   | 2009   |   |      | 227,583 |   |           |   | 137,221 |              |   |   | --                                         |   |   |                                                                        | --     |   |                           |   | -      |     |   |   | 21,667 |   |   |   | 386,471 |   |
| Mortgage Operations        |   | 2008   |   |      | 217,583 |   |           |   | 119,741 |              |   |   | --                                         |   |   |                                                                        | --     |   |                           |   | -      |     |   |   | 21,528 |   |   |   | 358,852 |   |
|                       |   |   |   |      |    |   |           |   |    |              |   |   |                                       |   |   |                                                                        |   |   |                           |   |   |     |   |   |   |   |   |   |   |   |
| Jeffrey R. Stephens        |   | 2010   |   | $         | 147,708 |   |           | $      | 8,000   |              |   |   | --                                         |   |   |                                                                        | --     |   |                           | $      | -      |     |   | $ | 11,117 |   |   | $ | 166,825 |   |
| General Counsel            |   | 2009   |   |      | 140,708 |   |           |   | 8,000   |              |   |   | --                                         |   |   |                                                                        | --     |   |                           |   | -      |     |   |   | 11,235 |   |   |   | 159,943 |   |
| and Corporate Secretary    |   | 2008   |   |      | 133,417 |   |           |   | 8,000   |              |   |   | --                                         |   |   |                                                                        | --     |   |                           |   | -      |     |   |   | 11,335 |   |   |   | 152,752 |   |

| (1) | George R. Quist is the father of Scott M. Quist. |
|-----|--------------------------------------------------|

| (2) | The amounts indicated under “Change in Pension Value and Non-qualified Deferred Compensation Earnings” consist of amounts contributed by the Company into a trust for the benefit of the Named Executive Officers under the Company’s Deferred Compensation Plan. |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | The amounts indicated under “All Other  Compensation” consist of the following amounts paid by the Company for the benefit of the named executive officers: |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | payments related to the operation of automobiles were for George R. Quist ($2,400  for each of the years 2010, 2009 and 2008); Scott M. Quist ($7,200 for each of the years 2010, 2009 and 2008);  Stephen M. Sill ($5,700 for 2010, 2009 and 2008); and Jeffrey R. Stephens ($-0- for each of the years 2010, 2009 and 2008). However, such payments do not include the furnishing of an automobile by the Company to George R. Quist, Scott M. Quist and J. Lynn Beckstead Jr., nor the payment of insurance and property taxes with respect to the automobiles operated by the such executive officers; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | group life insurance premiums paid by the Company to a group life insurance plan for George R. Quist ($9, $125, and $154for 2010, 2009 and 2008, respectively); Scott M. Quist, Stephen M. Sill, and J. Lynn Beckstead Jr. ($223, $211 and $218 each for 2010, 2009 and 2008, respectively); and Jeffrey R. Stephens ($115, $109 and $99 for 2010, 2009 and 2008, respectively); |
|--------|----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | life insurance premiums paid by the Company for the benefit of George R. Quist ($4,644 for each of the years 2010, 2009 and 2008); Scott M. Quist ($15,016 for 2010, $14,056 for 2009 and 2008); Stephen M. Sill ($2,976 for each of the years 2010, 2009 and 2008); J. Lynn Beckstead Jr. ($4,200 for each of the years 2010, 2009 and 2008); and Jeffrey R. Stephens ($-0- for each of the years 2010, 2009 and 2008); |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | d) | medical insurance premiums paid by the Company to a medical insurance plan; George R. Quist ($3,990 for 2010, $3,795 for 2009, and $3,491 for 2008); Scott M. Quist and J. Lynn Beckstead Jr. ($11,157 each for 2010, $11,091 each for 2009, and $11,047 each for 2008); Stephen M. Sill ($7,901 for 2010, $7,860 for 2009 and $7,910 for 2008); and Jeffrey R. Stephens ($10,738 for 2010, $11,838 for 2009, and $10,047 for 2008); |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | e) | long term disability insurance paid by the Company to a provider of such insurance; George R. Quist, Scott M. Quist, Stephen M, Sill, J. Lynn Beckstead Jr., and Jeffrey R. Stephens ($264 for 2010 and $288 for each of years 2009 and 2008); |
|--------|----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | f) | membership dues paid by the Company to Alpine Country Club for the benefit of J. Lynn Beckstead Jr. ($6,855 for 2010, $5,877 for 2009, and $5,793 for 2008); |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                  |   |   |   |     |   |   |       |   |   |       |   |   |        |   |   | Registrant |   |   |      |   |   |      |   |   |     |   |
|-----------------------|--------|--------|--------|----------|--------|--------|------------|--------|--------|------------|--------|--------|-------------|--------|--------|------------|--------|--------|-----------|--------|--------|-----------|--------|--------|----------|--------|
|                  |   |   |   |     |   |   |       |   |   |       |   |   |        |   |   | Contribu-  |   |   |      |   |   | Dividends |   |   |     |   |
|                  |   |   |   | Perks    |   |   |       |   |   |       |   |   |        |   |   | tions to   |   |   |      |   |   | or        |   |   |     |   |
|                  |   |   |   | and      |   |   |       |   |   |       |   |   | Payments/   |   |   | Defined    |   |   |      |   |   | Earnings  |   |   |     |   |
|                  |   |   |   | Other    |   |   | Tax        |   |   | Discounted |   |   | Accruals    |   |   | Contribu-  |   |   |      |   |   | on Stock  |   |   |     |   |
| Name of               |   |   |   | Personal |   |   | Reimburse- |   |   | Securities |   |   | on Termin-  |   |   | tion       |   |   | Insurance |   |   | or Option |   |   |     |   |
| Executive Officer     |   | Year   |   | Benefits |   |   | ments      |   |   | Purchases  |   |   | ation Plans |   |   | Plans      |   |   | Premiums  |   |   | Awards    |   |   | Other(1) |   |
| George R. Quist       |   | 2010   |   | $        | 2,400  |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   | $      | 8,907    |   |   |   | -- |   |   |   | -- |   |
|                  |   | 2009   |   |     | 2,400  |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   |   | 8,852    |   |   |   | -- |   |   |   | -- |   |
|                  |   | 2008   |   |     | 2,400  |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   |   | 8,559    |   |   |   | -- |   |   |   | -- |   |
|                  |   |   |   |     |   |   |       |   |   |       |   |   |        |   |   |       |   |   |      |   |   |      |   |   |     |   |   |   |   |   |   |   |   |   |
| Scott M. Quist        |   | 2010   |   | $        | 7,200  |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   | $      | 26,660   |   |   |   | -- |   |   |   | -- |   |
|                  |   | 2009   |   |     | 7,200  |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   |   | 25,646   |   |   |   | -- |   |   |   | -- |   |
|                  |   | 2008   |   |     | 7,200  |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   |   | 25,591   |   |   |   | -- |   |   |   | -- |   |
|                  |   |   |   |     |   |   |       |   |   |       |   |   |        |   |   |       |   |   |      |   |   |      |   |   |     |   |   |   |   |   |   |   |   |   |
| Stephen M. Sill       |   | 2010   |   | $        | 5,700  |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   | $      | 11,364   |   |   |   | -- |   |   |   | -- |   |
|                  |   | 2009   |   |     | 5,700  |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   |   | 11,335   |   |   |   | -- |   |   |   | -- |   |
|                  |   | 2008   |   |     | 5,700  |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   |   | 11,374   |   |   |   | -- |   |   |   | -- |   |
|                  |   |   |   |     |   |   |       |   |   |       |   |   |        |   |   |       |   |   |      |   |   |      |   |   |     |   |   |   |   |   |   |   |   |   |
| J. Lynn Beckstead Jr. |   | 2010   |   | $        | 6,855  |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   | $      | 15,844   |   |   |   | -- |   |   |   | -- |   |
|                  |   | 2009   |   |     | 5,877  |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   |   | 15,790   |   |   |   | -- |   |   |   | -- |   |
|                  |   | 2008   |   |     | 5,793  |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   |   | 15,735   |   |   |   | -- |   |   |   | -- |   |
|                  |   |   |   |     |   |   |       |   |   |       |   |   |        |   |   |       |   |   |      |   |   |      |   |   |     |   |   |   |   |   |   |   |   |   |
| Jeffrey R. Stephens   |   | 2010   |   | $        | -      |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   | $      | 11,117   |   |   |   | -- |   |   |   | -- |   |
|                  |   | 2009   |   |     | -      |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   |   | 11,235   |   |   |   | -- |   |   |   | -- |   |
|                  |   | 2008   |   |     | -      |   |       |   | --     |       |   |   | --          |   |   |       | --     |   |      |   | --     |      |   |   | 11,335   |   |   |   | -- |   |   |   | -- |   |

----

|                      |   |       |   | Estimated Future Payouts Under Equity Incentive Plan Awards |   |   | All Other Awards: Number of Securities Underlying |   |   |       |   | Exercise or Base Price of Option |       |   |   |   |    |  Grant Date Fair Value of Stock and Option |   |
|---------------------------|--------|------------|--------|-------------------------------------------------------------|--------|--------|---------------------------------------------------|--------|--------|------------|--------|----------------------------------|------------|--------|--------|--------|---------|-------------------------------------------------|--------|
| Name of Executive Officer |   | Grant Date |   | Threshold($)                                                |   |   | Target($)                                         |   |   | Maximum($) |   |                             | Options(#) |   |   |   |    | Awards($/Sh)                                    |   |   | Closing Price onGrant Date ($/Sh) |   |   | Awards($) |   |
| George R. Quist           |   | 12/3/10    |   |                                                        | --     |   |                                              |   | --     |       |   |                             | --         |   |   |   | 105,000 |                                            | (2     | ) |   | $ | 1.917 |   |   | $ | 1.830 |   |   | $ | 77,000 |   |
|                      |   |       |   |                                                        |   |   |                                              |   |   |       |   |                             |       |   |   |   |    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Scott M. Quist            |   | 12/3/10    |   |                                                        | --     |   |                                              |   | --     |       |   |                             | --         |   |   |   | 105,000 |                                            | (1     | ) (2) |   |   | 1.917 |   |   |   | 1.830 |   |   |   | 77,000 |   |
|                      |   |       |   |                                                        |   |   |                                              |   |   |       |   |                             |       |   |   |   |    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stephen M. Sill           |   | 12/3/10    |   |                                                        | --     |   |                                              |   | --     |       |   |                             | --         |   |   |   | 7,875   |                                            | (2     | ) |   |   | 1.740 |   |   |   | 1.830 |   |   |   | 5,325 |   |
|                      |   |       |   |                                                        |   |   |                                              |   |   |       |   |                             |       |   |   |   |    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| J. Lynn Beckstead, Jr.    |   | 12/3/10    |   |                                                        | --     |   |                                              |   | --     |       |   |                             | --         |   |   |   | 21,000  |                                            | (2     | ) |   |   | 1.740 |   |   |   | 1.830 |   |   |   | 14,200 |   |
|                      |   |       |   |                                                        |   |   |                                              |   |   |       |   |                             |       |   |   |   |    |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Jeffrey R. Stephens       |   | 12/3/10    |   |                                                        | --     |   |                                              |   | --     |       |   |                             | --         |   |   |   | 5,250   |                                            | (2     | ) |   |   | 1.740 |   |   |   | 1.830 |   |   |   | 3,550 |   |

|   | (1) | This reflects the equivalent of Class A common shares. On December 3, 2010, Mr. Quist was granted stock options to purchase 1,000,000 shares of Class C common stock at an exercise price of $.1917 per share which is equivalent to options to purchase 100,000 shares of Class A common stock at an exercise price of $1.917 per share. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The stock options have been adjusted for the 5% annual stock dividend declared December 31, 2010. |
|--------|-----|---------------------------------------------------------------------------------------------------|

----

|                      |   | Option Awards     |   | Stock Awards                                                           |
|---------------------------|--------|-------------------|--------|------------------------------------------------------------------------|
| Name of Executive Officer |   | Option Grant Date |   | Number of Securities Underlying Unexercised Options Exercisable (1)(#) |   | Number of Securities Underlying Unexercised Options Unexercisable(#) |   |  Option Exercise Price($) |   | Option Expiration Date |   | Stock Award GrantDate |   | Number of Shares or Units of Stock That Have Not Vested(#) |   | Market Value of Shares or Units of Stock That Have Not Vested($) |   | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested(#) |   | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested($) |
| George R. Quist           |   | 03/31/08          |   |   57,881                                                          | (5) |   | -- |   |   |  $  3.66 |   | 03/31/13 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/05/08          |   | 115,763                                                                | (6) |   | -- |   |   |      1.43 |   | 12/05/13 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/04/09          |   | 110,250                                                                | (7) |   | -- |   |   |      3.51 |   | 12/04/14 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/03/10          |   | --                                                                     |   |   | 105,000 | (8) |   |      1.92 |   | 12/03/15 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   |              |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Scott M. Quist            |   | 03/31/03          |   | 103,422                                                                | (2) |   | -- |   |   |  $  3.99 |   | 03/21/13 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 03/25/05          |   |   93,807                                                          | (4) |   | -- |   |   |      2.62 |   | 03/25/15 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 03/31/08          |   |   57,881                                                          | (9) |   | -- |   |   |      3.66 |   | 03/31/13 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/05/08          |   | 115,763                                                                | (6) (10) |   | -- |   |   |      1.43 |   | 12/05/13 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/04/09          |   | 110,250                                                                | (7) (11) |   | -- |   |   |      3.51 |   | 12/04/14 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/03/10          |   | --                                                                     |   |   | 105,000 | (8) (12) |   |      1.92 |   | 12/03/15 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   |              |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stephen M. Sill           |   | 03/21/08          |   |   8,682                                                           | (5) |   | -- |   |   |  $  3.33 |   | 03/31/18 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/04/09          |   |   8,269                                                           | (7) |   | -- |   |   |      3.19 |   | 12/04/19 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/03/10          |   | --                                                                     |   |   | 7,875 | (8) |   |      1.74 |   | 12/03/20 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   |              |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| J. Lynn Beckstead Jr.     |   | 03/21/03          |   | 22,162                                                                 | (2) |   | -- |   |   |  $  3.99 |   | 03/21/13 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/10/04          |   |   7,036                                                           | (3) |   | -- |   |   |      2.30 |   | 12/10/14 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 03/25/05          |   | 46,903                                                                 | (4) |   | -- |   |   |      2.62 |   | 03/25/15 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 03/31/08          |   |   9,261                                                           | (5) |   | -- |   |   |      3.33 |   | 03/31/18 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/05/08          |   | 23,153                                                                 | (6) |   | -- |   |   |      1.30 |   | 12/05/18 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/04/09          |   | 22,050                                                                 | (7) |   | -- |   |   |      3.19 |   | 12/04/19 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/03/10          |   | --                                                                     |   |   | 21,000 | (8) |   |      1.74 |   | 12/03/20 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   |              |   |                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Jeffrey R. Stephens       |   | 12/05/08          |   |   1,158                                                           | (6) |   | -- |   |   |  $  1.30 |   | 12/05/18 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/04/09          |   |   5,513                                                           | (7) |   | -- |   |   |      3.19 |   | 12/04/19 |   | -- |   | -- |   | -- |   | -- |   | -- |
|                      |   | 12/03/10          |   | --                                                                     |   |   | 5,250 | (8) |   |      1.74 |   | 12/03/20 |   | -- |   | -- |   | -- |   | -- |   | -- |

|   | (1) | Except for option granted George R. Quist and options granted to Scott M. Quist after May 31, 2007, which have a five year term, such grants have ten year terms. The vesting of any unvested shares is subject to the recipient’s continuous employment. This reflects the equivalent of Class A common shares. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Stock options vested on the grant date on March 21, 2003. |
|--------|-----|-----------------------------------------------------------|

----

|   | (3) | Stock options vested on the grant date on December 10, 2004. |
|--------|-----|--------------------------------------------------------------|

|   | (4) | Stock options vested on the grant date on March 25, 2005. |
|--------|-----|-----------------------------------------------------------|

|   | (5) | Stock options vested at the rate of 25% of the total number of shares subject to the options on June 30, 2008 and 25% of the total number of shares on the last day of each three month period thereafter. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (6) | Stock options vested at the rate of 25% of the total number of shares subject to the options on March 5, 2009 and 25% of the total number of shares on the last day of each three month period thereafter. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (7) | Stock options vested at the rate of 25% of the total number of shares subject to the options on March 4, 2010 and 25% of the total number of shares on the last day of each three month period thereafter. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (8) | Stock options vested at the rate of 25% of the total number of shares subject to the options on March 3, 2011 and 25% of the total number of shares on the last day of each three month period thereafter. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (9) | On March 31, 2008, Scott M. Quist was granted stock options to purchase 500,000 shares of Class c common stock at an exercise price of $.424 per share, which is equivalent to options to purchase 50,000 shares of Class A common stock at an exercise price of $4.24 per share. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (10) | On December 5, 2008, Mr. Quist was granted stock options to purchase 610,770 shares of Class C common stock at an exercise price of $.165 per share, which is equivalent to options to purchase 61,077 shares of Class A common stock at an exercise price of $1.65 per share, and to purchase 38,923 shares of Class A common stock at an exercise price of $1.65 per share. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (11) | On December 4, 2009, Mr. Quist was granted stock options to purchase 1,000,000 shares of Class C common stock at an exercise price of $.3872 per share, which is equivalent to options to purchase 100,000 shares of Class A common stock at an exercise price of $3.872 per share. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (12) | On December 3, 2010, Mr. Quist was granted stock options to purchase 1,000,000 shares of Class C common stock at an exercise price of $.1917 per share, which is equivalent to options to purchase 100,000 shares of Class A common stock at an exercise price of $1.917 per share. |
|--------|------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Grant Date |   | Vesting                                                                           |
|------------|--------|-----------------------------------------------------------------------------------|
| 03/21/03   |   | These options vested on the grant date.                                           |
| 12/10/04   |   | These options vested on the grant date.                                           |
| 03/25/05   |   | These options vested on the grant date.                                           |
| 03/31/08   |   | These options vested 25% per quarter over a one year period after the grant date. |
| 12/05/08   |   | These options vested 25% per quarter over a one year period after the grant date. |
| 12/04/09   |   | These options vested 25% per quarter over a one year period after the grant date. |
| 12/03/10   |   | These options vest 25% per quarter over a one year period after the grant date.   |

|                      |   | Option Awards                         |   |   | Stock Awards                 |   |
|---------------------------|--------|---------------------------------------|--------|--------|------------------------------|--------|
|                      |   | Number of Shares Acquired on Exercise |   |   | Value Realized on Exercise   |   |   | Number of Shares Acquired on Vesting |   |   | Value Realized on Vesting |   |
| Name of Executive Officer |   |    (#)            |   |   |    ($)   |   |   |     (#)    |   |   |    ($)   |   |
| George R. Quist           |   |                                  | 89,340 |   |                         | $      | 286,781 |   |   |   | -- |   |   |   | -- |   |
| Scott M. Quist            |   |                                  | --     |   |                         |   | -- |   |   |   | -- |   |   |   | -- |   |
| Stephen M. Sill           |   |                                  | 8,269  |   |                         |   | 28,528 |   |   |   | -- |   |   |   | -- |   |
| J. Lynn Beckstead, Jr.    |   |                                  | --     |   |                         |   | -- |   |   |   | -- |   |   |   | -- |   |
| Jeffrey R. Stephens       |   |                                  | --     |   |                         |   | -- |   |   |   | -- |   |   |   | -- |   |

----

|                      |      |   | Number of |               |   | Present     |   |   | Payments    |   |
|---------------------------|-----------|--------|-----------|--------------------|--------|-------------|--------|--------|-------------|--------|
|                      |      |   | Years     |               |   | Value of    |   |   | During      |   |
|                      |      |   | Credited  |               |   | Accumulated |   |   | Last Fiscal |   |
|                      |      |   | Service   |               |   | Benefit     |   |   | Year        |   |
| Name of Executive Officer | Plan Name |   | (#)       |     |   | ($)         |   |   | ($)         |   |
|                      |      |   |      |               |   |        |   |   |        |   |   |
| George R. Quist           | None      |   |      | --                 |   |        |   | --     |        |   |   | -- |   |
| Scott M. Quist            | None      |   |      | --                 |   |        |   | --     |        |   |   | -- |   |
| Stephen M. Sill           | None      |   |      | --                 |   |        |   | --     |        |   |   | -- |   |
| J. Lynn Beckstead, Jr.    | None      |   |      | --                 |   |        |   | --     |        |   |   | -- |   |
| Jeffrey R.Stephens        | None      |   |      | --                 |   |        |   | --     |        |   |   | -- |   |

|   | · | All compensation plans previously approved by security holders; and |
|--------|--------|---------------------------------------------------------------------|

|   | · | All compensation plans not previously approved by security holders. |
|--------|--------|---------------------------------------------------------------------|

|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | A                                                                                           |   | B                                                                           |   | C                                                                                                                                         |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------|
| Plan Category                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights |   | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights |   | Number of Securities Remaining Available for Future Issuance under Equity Compensation Plans (Excluding Securities Reflected in Column A) |
| Equity compensation plans approved by stockholders[1]                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       | 1,914,730[2]                                                                                |   | $2.69[3]                                                                    |   | 844,125[4]                                                                                                                                |
| Equity compensation plans not approved by stockholders                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | 0                                                                                           |   | -                                                                           |   | 0                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |                                                                                        |   |                                                                        |   |                                                                                                                                      |
| [1]  This reflects the 1993 Stock Option Plan (the “1993 Plan”), the 2000 Director Stock Option Plan (the “2000 Director Plan”), the 2003 Stock Option Plan (the “2003 Plan”), and the 2006 Director Stock Option Plan (the “2006 Director Plan”).  The 2003 Plan was approved by stockholders at the annual stockholders meeting held on July 11, 2003, which reserved 500,000 shares of Class A common stock and 1,000,000 shares of Class C common stock for issuance thereunder.  As a result of the stockholder approval of the 2003 Plan, the Company terminated the 1993 Plan.  The 2006 Director Plan was approved by stockholders at the annual stockholders meeting held on December 7, 2006, which reserved 100,000 shares of Class A common stock for issuance thereunder.  As a result of the stockholder approval of the 2006 Director Plan, the Company terminated the 2000 Director Plan. |
| [2]  Assumes that 3,438,355 shares of Class C common stock issuable upon the exercise of certain outstanding options are converted into 343,835 shares of Class A common stock.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
| [3]  The weighted average exercise prices reflect solely the shares of Class A common stock that will be issued upon exercise of outstanding options.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| [4]  This number includes 817,478 shares of Class A common stock and 5 shares of Class C common stock available for future issuance under the 2003 Plan, and 26,642 shares of Class A common stock available for future issuance under the 2006 Director Plan.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

----

|                  |   |      |   |   |   |   |   |   |   |   |           |   |   | Change in     |   |   |         |   |   |   |   |
|-----------------------|--------|-----------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|---------------|--------|--------|--------------|--------|--------|--------|--------|
|                  |   |      |   |   |   |   |   |   |   |   |           |   |   | Pension Value |   |   |         |   |   |   |   |
|                  |   | Fees      |   |   |   |   |   |   |   |   |           |   |   | and           |   |   |         |   |   |   |   |
|                  |   | Earned or |   |   |   |   |   |   |   |   | Non-Equity     |   |   | Nonqualified  |   |   |         |   |   |   |   |
|                  |   | Paid In   |   |   | Stock  |   |   | Option |   |   | Incentive Plan |   |   | Deferred      |   |   | All Other    |   |   |   |   |
|                  |   | Cash      |   |   | Awards |   |   | Awards |   |   | Compensation   |   |   | Compensation  |   |   | Compensation |   |   | Total  |   |
| Name                  |   |  ($) |   |   | ($)    |   |   | ($)    |   |   | ($)            |   |   | Earnings      |   |   | ($)          |   |   | ($)    |   |
|                  |   |      |   |   |   |   |   |   |   |   |           |   |   |          |   |   |         |   |   |   |   |
| Charles L. Crittenden |   | $         | 19,050 |   |   |   | --     |   |   | $      | 4,467          |   |   |          | --     |   |         |   | --     |   |   |   | -- |   |   | $ | 23,517 |   |
| Robert G. Hunter      |   |      | 16,800 |   |   |   | --     |   |   |   | 4,467          |   |   |          | --     |   |         |   | --     |   |   |   | -- |   |   |   | 21,267 |   |
| H. Craig Moody        |   |      | 19,050 |   |   |   | --     |   |   |   | 4,467          |   |   |          | --     |   |         |   | --     |   |   |   | -- |   |   |   | 23,517 |   |
| Norman G. Wilbur      |   |      | 19,050 |   |   |   | --     |   |   |   | 4,467          |   |   |          | --     |   |         |   | --     |   |   |   | -- |   |   |   | 23,517 |   |

----

|                   |   | Executive     |   |   | Registrant    |   |   | Aggregate        |   |   | Aggregate     |   |   | Aggregate       |   |
|------------------------|--------|---------------|--------|--------|---------------|--------|--------|------------------|--------|--------|---------------|--------|--------|-----------------|--------|
|                   |   | Contributions |   |   | Contributions |   |   | Earnings in Last |   |   | Withdrawals   |   |   | Balance at Last |   |
|                   |   | In Last FY    |   |   | In Last FY    |   |   | FY               |   |   | Distributions |   |   | FYE             |   |
| Name                   |   | ($)           |   |   | ($)           |   |   | ($)              |   |   | ($)           |   |   | ($)             |   |
|                   |   |          |   |   |          |   |   |             |   |   |          |   |   |            |   |
| George R. Quist        |   |          | --     |   |          |   | --     |             |   |   | --            |   |   |            | --     |   |   | $ | 118,430 |   |
| Scott M. Quist         |   |          | --     |   |          |   | --     |             |   |   | --            |   |   |            | --     |   |   |   | 131,058 |   |
| Stephen M. Sill        |   |          | --     |   |          |   | --     |             |   |   | --            |   |   |            | --     |   |   |   | 41,442 |   |
| J. Lynn Beckstead, Jr. |   |          | --     |   |          |   | --     |             |   |   | --            |   |   |            | --     |   |   |   | 66,326 |   |
| Jeffrey R. Stephens    |   |          | --     |   |          |   | --     |             |   |   | --            |   |   |            | --     |   |   |   | - |   |

----

----

----

|                                              |                                  | Class ACommon Stock                              |                  | Class CCommon Stock |                  | Class A andClass CCommon Stock        |
|---------------------------------------------------|---------------------------------------|--------------------------------------------------|-----------------------|---------------------|-----------------------|---------------------------------------|
|                                              |                                  |                                             |                  |                |                  |                                  |   |   |   |   |   |   |
|                                              |                                  | Amount                                           |                  | Percent             |                  | Amount                                |   | Percent |   | Amount |   | Percent |
|                                              |                                  | Beneficially                                     |                  | of                  |                  | Beneficially                          |   | of |   | Beneficially |   | of |
| Name and Address (1)                              |                                  | Owned                                            |                  | Class               |                  | Owned                                 |   | Class |   | Owned |   | Class |
| George R. and Shirley C. Quist                    |                                  |                                             |                  |                |                  |                                  |   |   |   |   |   |   |
| Family Partnership, Ltd. (2)                      |      650,607 | 7.0%                                             |   4,496,896 | 34.5%               |   5,147,503 | 32.0%                                 |
| Scott M. Quist (3)(6)(7)(9)                       |                                  |      607,489            |                  | 6.5%                |                  |   4,441,520                 |   | 34.1% |   |   5,049,009 |   | 31.4% |
| Employee Stock                                    |                                  |                                             |                  |                |                  |                                  |   |   |   |   |   |   |
| Ownership Plan (4)                                |      659,754 | 7.1%                                             |   2,081,224 | 16.0%               |   2,740,978 | 17.0%                                 |
| George R. Quist (3)(5)(7)(8)                      |                                  |      742,126            |                  | 8.0%                |                  |      577,359 |   | 4.4% |   |   1,319,485 |   | 8.2% |
| Associated Investors (10)                         |                                  |        94,880 |                  | 1.0%                |                  |      878,583 |   | 6.7% |   |      973,463 |   | 6.1% |
| J. Lynn Beckstead, Jr., (6)(12)                   |                                  |      315,965            |                  | 3.4%                |                  |  -                               |   | - |   |      315,965 |   | 2.0% |
| Christie Q. Overbaugh (13)                        |                                  |      173,761            |                  | 1.9%                |                  |      151,284 |   | 1.2% |   |      325,045 |   | 2.0% |
| Stephen M. Sill (6)(14)                           |                                  |      113,659            |                  | 1.2%                |                  |  -                               |   | - |   |      113,659 |   | * |
| Jeffrey R. Stephens (11)                          |                                  |        25,702 |                  | *                   |                  |  -                               |   | - |   |        25,702 |   | * |
| Robert G. Hunter, M.D., (4)(15)                   |                                  |        27,230 |                  | *                   |                  |  -                               |   | - |   |        27,230 |   | * |
| Charles L. Crittenden (16)                        |                                  |        26,980 |                  | *                   |                  |  -                               |   | - |   |        26,980 |   | * |
| Norman G. Wilbur (17)                             |                                  |        24,575 |                  | *                   |                  |  -                               |   | - |   |        24,575 |   | * |
| H. Craig Moody (18)                               |                                  |        24,206 |                  | *                   |                  |  -                               |   | - |   |        24,206 |   | * |
| All directors and executive officers              |                                  |                                             |                  |                |                  |                                  |   |   |   |   |   |   |
|     (10 persons) (3)(5)(6)(7) | 2,732,300                             | 29.3%                                            | 9,667,059             | 74.2%               | 12,399,359            | 55.5%                                 |

| (1)  | Unless otherwise indicated, the address of each listed stockholder is c/o Security National Financial Corporation, 5300 South 360 West, Suite 250, Salt Lake City, Utah 84123.                                                                                                                                                                   |
|------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | This stock is owned by the George R. and Shirley C. Quist Family Partnership, Ltd., of which Scott M. Quist is the managing general partner.                                                                                                                                                                                                     |
| (3)  | Does not include 659,754 shares of Class A common stock and 2,081,224 shares of Class C common stock owned by the Company’s Employee Stock Ownership Plan (ESOP), of which George R Quist, Scott M. Quist and Robert G. Hunter are the trustees and accordingly, exercise shared voting and investment powers with respect to such shares. |
| (4)  | The trustees of the Employee Stock Ownership Plan (ESOP) are George R. Quist, Scott M. Quist, and Robert G. Hunter who exercise shared voting and investment powers.                                                                                                                                                                             |
| (5)  | Does not include 94,880 shares of Class A common stock and 878,583 shares of Class C common stock owned by Associated Investors, a Utah general partnership, of which George R. Quist is the managing partner and, accordingly, exercises sole voting and investment powers with respect to such shares.                                         |
| (6)  | Does not include 999,174 shares of Class A common stock owned by the Company’s 401(k) Retirement Savings Plan, of which Scott M. Quist, J. Lynn Beckstead, and Stephen M. Sill are members of the Investment Committee and, accordingly, exercise shared voting and investment powers with respect to such shares.                         |
| (7)  | Does not include 496,665 shares of Class A common stock owned by the Company’s Deferred Compensation Plan, of which George R. Quist and Scott M. Quist are members of the Investment Committee and, accordingly, exercise shared voting and investment powers with respect to such shares.                                                 |
| (8)  | Includes options to purchase 310,144 shares of Class A common stock granted to George R. Quist that are currently exercisable or will become exercisable within 60 days of March 31, 2011.                                                                                                                                                       |
| (9)  | Includes options to purchase 242,287 shares of Class A common stock and 2,650,853 shares of Class C common stock granted to Scott M. Quist that are currently exercisable or will become exercisable within 60 days of March 31, 2011.                                                                                                           |
| (10) | The managing partner of Associated Investors is George R. Quist, who exercises sole voting and investment powers.                                                                                                                                                                                                                                |

----

| (11) | Includes options to purchase 7,984 shares of Class A common stock granted to Jeffrey R. Stephens that are currently exercisable or will become exercisable within 60 days of March 31, 2011. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (12) | Includes options to purchase 135,815 shares of Class A common stock granted to Mr. Beckstead that are currently exercisable or will become exercisable within 60 days of March 31, 2011.     |
| (13) | Includes options to purchase 74,157 shares of Class A common stock granted to Ms. Overbaugh that are currently exercisable or will become exercisable within 60 days of March 31, 2011.      |
| (14) | Includes options to purchase 18,920 shares of Class A common stock grant to Mr. Sill that are currently exercisable or will become exercisable within 60 days of March 31, 2011.             |
| (15) | Includes options to purchase 20,522 shares of Class A common stock granted to Mr. Hunter that are currently exercisable or will become exercisable within 60 days of March 31, 2011.         |
| (16) | Includes options to purchase 20,522 shares of Class A common stock granted to Mr. Crittenden that are currently exercisable or will become exercisable within 60 days of March 31, 2011.     |
| (17) | Includes options to purchase 20,522 shares of Class A common stock granted to Mr. Wilbur that are currently exercisable or will become exercisable within 60 days of March 31, 2011.         |
| (18) | Includes options to purchase 20,522 shares of Class A common stock granted to Mr. Moody that are currently exercisable or will become exercisable within 60 days of March 31, 2011.          |

----

| Fee Category           |   | 2010   |    |   | 2009   |   |
|------------------------|--------|--------|---------|--------|--------|--------|
| Audit Fees (1)         |   | $      | 445,000 |   |   | $      | 373,300 |   |
| Audit-Related Fees (2) |   |   | 18,400  |   |   |   | 53,700 |   |
| Tax Fees (3)           |   |   | 70,800  |   |   |   | 80,400 |   |
| All Other Fees (4)     |   |   | 16,100  |   |   |   | 24,000 |   |
|                   |   | $      | 550,300 |   |   | $      | 531,400 |   |

|   | (1) | Audit fees consist of aggregate fees billed for professional services rendered for the audit of the Company’s annual financial statements and review of the interim financial statements included in quarterly reports or services that are normally provided by the independent auditor in connection with statutory and regulatory filings for the years ended December 31, 2010 and 2009. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Audit related fees consist of aggregate fees billed for assurance and related services that are reasonably related to the performance of the audit or review of the Company’s financial statements and are not reported under “Audit Fees”. These fees include review of registration statements, and audits of the Company’s ESOP and 401(k) Plans. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Tax fees consist of aggregate fees billed for professional services for tax compliance, tax advice, and tax planning. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------|

|   | (4) | All other fees consist of aggregate fees billed for products and services by the independent auditor, other than those disclosed above. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

|   | The following Exhibits are filed herewith pursuant to Rule 601 of Regulation S-K or are incorporated by reference to previous filings. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------|

| 3.1  | Articles of Restatement of Articles of Incorporation (4)                                   |
|------|--------------------------------------------------------------------------------------------|
| 3.2  | Amended Bylaws (6)                                                                         |
| 4.1  | Specimen Class A Stock Certificate (1)                                                     |
| 4.2  | Specimen Class C Stock Certificate (1)                                                     |
| 4.3  | Specimen Preferred Stock Certificate and Certificate of Designation of Preferred Stock (1) |
| 10.1 | Restated and Amended Employee Stock Ownership Plan and Trust Agreement (1)                 |
| 10.2 | 2003 Stock Option Plan (5)                                                                 |
| 10.3 | 2006 Director Stock Option Plan (12)                                                       |
| 10.4 | Deferred Compensation Agreement with George R. Quist (2)                                   |
| 10.5 | Deferred Compensation Plan (3)                                                             |

----

| 10.6  | Employment agreement with J. Lynn Beckstead, Jr. (7)                                                                                                                                                                                  |
|-------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 10.7  | Employment agreement with Scott M. Quist (8)                                                                                                                                                                                          |
| 10.8  | Indemnification Agreement among Security National Life Insurance Company, Capital Reserve Life Insurance Company, and the shareholders of Capital Reserve Life Insurance Company (9)                                                  |
| 10.9  | Escrow Agreement among Security National Insurance Company, Capital Reserve Life Insurance Company, the shareholders of Capital Reserve Life Insurance Company, and Mackey Price Thompson & Ostler as Escrow Agent (9)            |
| 10.10 | Reinsurance Agreement between Security National Life Insurance Company and Capital Reserve Life Insurance Company (9)                                                                                                                 |
| 10.11 | Stock Purchase Agreement among Security National Life Insurance Company, Southern Security Life Insurance Company, and the shareholders of Southern Security Life Insurance Company (10)                                              |
| 10.12 | Reinsurance Agreement among Security National Life Insurance Company, Southern Security Life Insurance Company, and the shareholders of Southern Security Life Insurance Company (11)                                                 |
| 10.13 | Escrow Agreement among Security National Life Insurance Company, Southern Security Life Insurance Company, the shareholders of Southern Security Life Insurance Company, and Mackey Price Thompson & Ostler, as escrow agent (12) |
| 10.14 | Indemnification Agreement among SecurityNational Mortgage Company, Lehman Brothers Bank, and Aurora Loan Services (13)                                                                                                                |
| 10.15 | Agreement and Plan of Complete Liquidation of Security National Life Insurance Company of Louisiana into Security National Life Insurance Company (14)                                                                                |
| 10.16 | Assumption Reinsurance Agreement between Security National Life Insurance Company of Louisiana and Security National Life Insurance Company (14)                                                                                      |
| 10.17 | Assignment between Security National Life Insurance Company of Louisiana and Security National Life Insurance Company (14)                                                                                                            |
| 10.18 | Agreement and Plan of Complete Liquidation of Capital Reserve Life Insurance Company into Security National Life Insurance Company (14)                                                                                               |
| 10.19 | Assignment between Capital Reserve Life Insurance Company and Security National Life Insurance Company (14)                                                                                                                           |
| 21    | Subsidiaries of the Registrant                                                                                                                                                                                                        |
| 31.1  | Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                         |
| 31.2  | Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002                                                                                                                         |
| 32.1  | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                |
| 32.2  | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                                                                                                                |

|   | (1)  | Incorporated by reference from Registration Statement on Form S-1, as filed on September 29, 1987                                                                   |
|--------|------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (2)  | Incorporated by reference from Annual Report on Form 10-K, as filed on March 31, 1989                                                                               |
|   | (3)  | Incorporated by reference from Annual Report on Form 10-K, as filed on April 3, 2002                                                                                |
|   | (4)  | Incorporated by reference from Report on Form 8-K/A as filed on January 8, 2003                                                                                     |
|   | (5)  | Incorporated by reference from Schedule 14A Definitive Proxy Statement, Filed on                                                                                    |
|   | (6)  | September 5, 2003, relating to the Company’s Annual Meeting of Shareholders Incorporated by reference from Report on Form 10-Q, as filed on November 14, 2003 |
|   | (7)  | Incorporated by reference from Report on Form 10-K, as filed on March 30, 2004                                                                                      |
|   | (8)  | Incorporated by reference from Report on Form 10-Q, as filed on August 13, 2004                                                                                     |
|   | (9)  | Incorporated by reference from Report on Form 8-K, as filed on January 14, 2008                                                                                     |
|   | (10) | Incorporated by reference from Report on Form 8-K, as filed on August 25, 2008                                                                                      |
|   | (11) | Incorporated by reference from Report on Form 8-K/A, as filed on September 17, 2008                                                                                 |
|   | (12) | Incorporated by reference from Report on Form 8-K, as filed on January 7, 2009                                                                                      |
|   | (13) | Incorporated by reference from Report on Form 10-K, as filed on March 31, 2009                                                                                      |
|   | (14) | Incorporated by reference from Report on Form 8-K, as filed on January 12, 2010                                                                                     |

----

| Dated: March 31, 2011 | By:    | /s/ George R. Quist                                                              |
|-----------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                  |   | George R. Quist                                                                                                                                                                                                                                                                                                                                                                                   |
|                  |   | Chairman of the Board and Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                 |

| SIGNATURE                                                                                                                                  | TITLE                         | DATE           |
|--------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------|----------------|
|                                                                                                                                       |                          |           |
| /s/ George R. Quist                              | Chairman of the Board and     |           |
| George R. Quist                                                                                                                            | Chief Executive Officer       |           |
|                                                                                                                                       | (Principal Executive Officer) | March 31, 2011 |
|                                                                                                                                       |                          |           |
| /s/ Scott M. Quist                     | President, Chief Operating    |           |
| Scott M. Quist                                                                                                                             | Officer and Director          | March 31, 2011 |
|                                                                                                                                       |                          |           |
| /s/ Stephen M. Sill                         | Vice President, Treasurer     |           |
| Stephen M. Sill                                                                                                                            | and Chief Financial Officer   |           |
|                                                                                                                                       | (Principal Financial and      |           |
|                                                                                                                                       | Accounting Officer)           | March 31, 2011 |
|                                                                                                                                       |                          |           |
| /s/ J. Lynn Beckstead, Jr.                                                                              | Vice President and Director   | March 31, 2011 |
| J. Lynn Beckstead, Jr.                                                                                                                     |                          |           |
|                                                                                                                                       |                          |           |
| /s/ Charles L. Crittenden                                                                          | Director                      | March 31, 2011 |
| Charles L. Crittenden                                                                                                                      |                          |           |
|                                                                                                                                       |                          |           |
| /s/ H. Craig Moody                                    | Director                      | March 31, 2011 |
| H. Craig Moody                                                                                                                             |                          |           |
|                                                                                                                                       |                          |           |
| /s/ Norman G. Wilbur                                                 | Director                      | March 31, 2011 |
| Norman G. Wilbur                                                                                                                           |                          |           |
|                                                                                                                                       |                          |           |
| /s/ Robert G. Hunter                                       | Director                      | March 31, 2011 |
| Robert G. Hunter                                                                                                                           |                          |           |

----

|                                                                                                            |   | December 31, |       |
|-----------------------------------------------------------------------------------------------------------------|--------|--------------|------------|
|                                                                                                            |   | 2010         |       |   | 2009 |   |
| Assets                                                                                                          |   |         |       |   |   |   |
|                                                                                                            |   |         |       |   |   |   |
| Cash                                                                                                            |   | $            | 1,305,956  |   |   | $ | 1,712,983 |   |
| Real estate net of accumulated depreciation of $-0- for 2010 and $-0- for 2009                                  |   |         | --         |   |   |   | -- |   |
| Investment in subsidiaries (equity method)                                                                      |   |         | 72,846,102 |   |   |   | 73,617,659 |   |
|                                                                                                            |   |         |       |   |   |   |   |   |
| Receivables:                                                                                                    |   |         |       |   |   |   |   |   |
| Receivable from affiliates                                                                                      |   |         | 5,298,158  |   |   |   | 5,548,649 |   |
| Other                                                                                                           |   |         | 349,056    |   |   |   | 93,597 |   |
| Allowance for doubtful accounts                                                                                 |   |         | --         |   |   |   | -- |   |
| Total receivables                                                                                               |   |         | 5,647,214  |   |   |   | 5,642,246 |   |
|                                                                                                            |   |         |       |   |   |   |   |   |
| Property and equipment, at cost, net of accumulated depreciation of $1,705,899 for 2010 and $1,571,658 for 2009 |   |         | 111,206    |   |   |   | 245,449 |   |
|                                                                                                            |   |         |       |   |   |   |   |   |
| Other assets                                                                                                    |   |         | 42,239     |   |   |   | 48,122 |   |
|                                                                                                            |   |         |       |   |   |   |   |   |
| Total assets                                                                                                    |   | $            | 79,952,717 |   |   | $ | 81,266,459 |   |

----

|                                                                                                                                                                      |   | December 31, |       |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|------------|
|                                                                                                                                                                      |   | 2010         |       |   | 2009 |   |
| Liabilities and Stockholders’ Equity Liabilities                                                                                                                    |   |         |       |   |   |   |
| Bank loans payable:                                                                                                                                                       |   |         |       |   |   |   |
| Current installments                                                                                                                                                      |   | $            | 1,182,336  |   |   | $ | 1,385,698 |   |
| Long-term                                                                                                                                                                 |   |         | --         |   |   |   | 1,182,122 |   |
| Notes and contracts payable:                                                                                                                                              |   |         |       |   |   |   |   |   |
| Current installments                                                                                                                                                      |   |         | 961        |   |   |   | 961 |   |
| Long-term                                                                                                                                                                 |   |         | --         |   |   |   | -- |   |
| Advances from affiliated companies                                                                                                                                        |   |         | 8,989,597  |   |   |   | 9,006,276 |   |
| Other liabilities and accrued expenses                                                                                                                                    |   |         | 1,490,269  |   |   |   | 1,438,175 |   |
| Income taxes                                                                                                                                                              |   |         | 8,361,086  |   |   |   | 8,447,785 |   |
| Total liabilities                                                                                                                                                         |   |         | 20,024,249 |   |   |   | 21,461,017 |   |
|                                                                                                                                                                      |   |         |       |   |   |   |   |   |
| Stockholders’ Equity                                                                                                                                                |   |         |       |   |   |   |   |   |
| Class A common stock $2.00 par value; 20,000,000 shares authorized; issued 9,178,945 shares in 2010 8,730,227 shares in 2009                                              |   |         | 18,357,890 |   |   |   | 17,460,454 |   |
| Class B non-voting common stock-$1.00 par value; 5,000,000 shares authorized; none issued or outstanding                                                             |   |         | --         |   |   |   | -- |   |
| Class C convertible common stock, $0.20 par value; 15,000,000  shares authorized; issued 9,660,152 shares in 2010 and 9,214,211 shares in 2009                  |   |         | 1,932,031  |   |   |   | 1,842,842 |   |
| Additional paid-in capital                                                                                                                                                |   |         | 19,689,993 |   |   |   | 19,191,606 |   |
| Accumulated other comprehensive income                                                                                                                                    |   |         | 1,188,246  |   |   |   | 1,593,327 |   |
| Retained Earnings                                                                                                                                                         |   |         | 21,907,579 |   |   |   | 23,178,944 |   |
| Treasury stock at cost - (1,322,074 Class A shares and -0- Class C shares in 2010; 1,454,974 Class A shares and -0- Class C shares in 2009, held by affiliated companies) |   |         | (3,147,271 | ) |   |   | (3,461,731 | ) |
| Total stockholders’ equity                                                                                                                                          |   |         | 59,928,468 |   |   |   | 59,805,442 |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                          |   | $            | 79,952,717 |   |   | $ | 81,266,459 |   |

----

|                                                              |   | Year Ended December 31, |     |
|-------------------------------------------------------------------|--------|-------------------------|----------|
|                                                              |   | 2010                    |     |   | 2009 |   |   | 2008 |   |
| Revenue                                                           |   |                    |     |   |   |   |   |   |   |
| Net investment income                                             |   | $                       | 11,969   |   |   | $ | 89,466 |   |   | $ | 161 |   |
| Fees from affiliates                                              |   |                    | 835,172  |   |   |   | 867,859 |   |   |   | 2,543,907 |   |
| Other Income                                                      |   |                    | -        |   |   |   | 81,912 |   |   |   | - |   |
| Net realized gains and losses                                     |   |                    | -        |   |   |   | 5,615 |   |   |   | - |   |
| Total revenue                                                     |   |                    | 847,141  |   |   |   | 1,044,852 |   |   |   | 2,544,068 |   |
| Benefits and Expenses:                                            |   |                    |     |   |   |   |   |   |   |   |   |   |
| General and administrative expenses                               |   |                    | 943,723  |   |   |   | 946,476 |   |   |   | 2,253,673 |   |
| Interest expense                                                  |   |                    | 54,260   |   |   |   | 105,144 |   |   |   | 149,355 |   |
| Expenses to affiliates                                            |   |                    | -        |   |   |   | - |   |   |   | 61,204 |   |
| Total benefits and expenses                                       |   |                    | 997,983  |   |   |   | 1,051,620 |   |   |   | 2,464,232 |   |
|                                                              |   |                    |     |   |   |   |   |   |   |   |   |   |
| Earnings (loss) before income taxes, and earnings of subsidiaries |   |                    | (150,842 | )  |   |   | (6,768 | )  |   |   | 79,836 |   |
| Income tax expense                                                |   |                    | 86,699   |   |   |   | (253,667 | ) |   |   | 78,595 |   |
| Equity in earnings (loss) of subsidiaries                         |   |                    | (366,481 | ) |   |   | 4,034,315 |   |   |   | 416,422 |   |
|                                                              |   |                    |     |   |   |   |   |   |   |   |   |   |
| Net earnings (loss)                                               |   | $                       | (430,624 | ) |   | $ | 3,773,880 |   |   | $ | 574,853 |   |

----

|                                                                                |   | Year Ended December 31, |       |
|-------------------------------------------------------------------------------------|--------|-------------------------|------------|
|                                                                                |   | 2010                    |       |   | 2009 |   |   | 2008 |   |
| Cash flows from operating activities:                                               |   |                    |       |   |   |   |   |   |   |
| Net earnings (loss)                                                                 |   | $                       | (430,624   | ) |   | $ | 3,773,880 |   |   | $ | 574,853 |   |
| Adjustments to reconcile net earnings to net cash provided by operating activities: |   |                    |       |   |   |   |   |   |   |   |   |   |
| Depreciation and amortization                                                       |   |                    | 134,243    |   |   |   | 150,009 |   |   |   | 194,116 |   |
| Undistributed earnings of affiliates                                                |   |                    | (366,481   | ) |   |   | (4,034,315 | ) |   |   | (1,406,214 | ) |
| Provision for income taxes                                                          |   |                    | (86,699    | ) |   |   | 253,667 |   |   |   | 918,044 |   |
| Provision for losses on loans & real estate                                     |   |                    | --         |   |   |   | -- |   |   |   | 500,000 |   |
| Stock based compensation expense                                                    |   |                    | 520,457    |   |   |   | 485,986 |   |   |   | 378,227 |   |
| Benefit plans funded with treasury stock                                            |   |                    | 438,274    |   |   |   | 457,070 |   |   |   | 204,990 |   |
| Change in assets and liabilities:                                                   |   |                    |       |   |   |   |   |   |   |   |   |   |
| Accrued Investment Income from affiliates                                           |   |                    | --         |   |   |   | (655 | ) |   |   | 287,135 |   |
| Accounts receivable                                                                 |   |                    | --         |   |   |   | -- |   |   |   | (187,000 | ) |
| Other assets                                                                        |   |                    | 5,883      |   |   |   | 5,699 |   |   |   | (14,821 | ) |
| Other liabilities                                                                   |   |                    | (123,207   | ) |   |   | (340,600 | ) |   |   | 158,568 |   |
| Net cash provided by operating activities                                           |   |                    | 91,846     |   |   |   | 750,741 |   |   |   | 1,607,898 |   |
|                                                                                |   |                    | -          |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                               |   |                    |       |   |   |   |   |   |   |   |   |   |
| Purchase of real estate                                                             |   |                    | --         |   |   |   | (186,271 | ) |   |   | -- |   |
| Sale of real estate                                                                 |   |                    | --         |   |   |   | 463,695 |   |   |   | -- |   |
| Purchase of equipment                                                               |   |                    | --         |   |   |   | (9,554 | ) |   |   | (2,685 | ) |
| Mortgage, policy loans made                                                         |   |                    | (89,375    | ) |   |   | (2,506,913 | ) |   |   | (715,606 | ) |
| Payments, mortgage loans                                                            |   |                    | 9,218      |   |   |   | 2,501,994 |   |   |   | 30,889 |   |
| Dividend received from subsidiary                                                   |   |                    | --         |   |   |   | 1,125,000 |   |   |   | -- |   |
| Investment in subsidiaries                                                          |   |                    | 732,956    |   |   |   | (1,167,333 | ) |   |   | -- |   |
| Net cash provided by (used in) investing activities                                 |   |                    | 652,799    |   |   |   | 220,618 |   |   |   | (687,402 | ) |
|                                                                                |   |                    |       |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                               |   |                    |       |   |   |   |   |   |   |   |   |   |
| Advances from (to) affiliates                                                       |   |                    | 233,812    |   |   |   | 1,177,977 |   |   |   | (187,341 | ) |
| Payments of notes and contracts payable                                             |   |                    | (1,385,484 | ) |   |   | (1,204,983 | ) |   |   | (1,662,223 | ) |
| Proceeds from borrowings on notes and contracts payable                             |   |                    | --         |   |   |   | -- |   |   |   | 1,500,000 |   |
| Net cash used in financing activities                                               |   |                    | (1,151,672 | ) |   |   | (27,006 | ) |   |   | (349,564 | ) |
| Net change in cash                                                                  |   |                    | (407,027   | ) |   |   | 944,353 |   |   |   | 570,932 |   |
| Cash at beginning of year                                                           |   |                    | 1,712,983  |   |   |   | 768,630 |   |   |   | 197,698 |   |
| Cash at end of year                                                                 |   | $                       | 1,305,956  |   |   | $ | 1,712,983 |   |   | $ | 768,630 |   |

----

|                                                                                                                                              |   | December 31, |      |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-----------|
|                                                                                                                                              |   | 2010         |      |   | 2009 |   |
| Bank prime rate less .28% (2.97% at December 31, 2010), collateralized by shares of Security National Life Insurance Company Stock, due June 2011 |   | $            | 357,336   |   |   | $ | 1,192,820 |   |
|                                                                                                                                              |   |         |      |   |   |   |   |   |
| Bank prime rate less .75% (2.50% at December 31, 2010) collateralized by shares of Security National Life Insurance Company Stock, due June 2011  |   |         | 825,000   |   |   |   | 1,375,000 |   |
| Total bank loans                                                                                                                                  |   |         | 1,182,336 |   |   |   | 2,567,820 |   |
|                                                                                                                                              |   |         | -         |   |   |   |   |   |
| Less current installments                                                                                                                         |   |         | 1,182,336 |   |   |   | 1,385,698 |   |
| Bank loans, excluding current installments                                                                                                        |   | $            | -         |   |   | $ | 1,182,122 |   |

|                                                |   | December 31, |   |
|-----------------------------------------------------|--------|--------------|--------|
|                                                |   | 2010         |   |   | 2009 |   |
| Other notes and contracts payable                   |   |         | 961    |   |   |   | 961 |   |
| Total notes and contracts                           |   |         | 961    |   |   |   | 961 |   |
| Less current installments                           |   |         | 961    |   |   |   | 961 |   |
| Notes and contracts, excluding current installments |   |         | -      |   |   |   | - |   |

----

| 2011       |   | $      | 1,183,297 |   |
|------------|--------|--------|-----------|--------|
| 2012       |   |   | -         |   |
| 2013       |   |   | -         |   |
| 2014       |   |   | -         |   |
| 2015       |   |   | -         |   |
| Thereafter |   |   | -         |   |
| Total      |   | $      | 1,183,297 |   |

|                                           |   | December 31, |      |
|------------------------------------------------|--------|--------------|-----------|
|                                           |   | 2010         |      |   | 2009 |   |
| Non-interest bearing advances from affiliates: |   |         |      |   |   |   |
| Cemetery and Mortuary subsidiary               |   | $            | 1,459,841 |   |   | $ | 1,459,841 |   |
| Life insurance subsidiaries                    |   |         | 7,529,756 |   |   |   | 7,502,452 |   |
| Mortgage subsidiary                            |   |         | -         |   |   |   | 43,983 |   |
|                                           |   | $            | 8,989,597 |   |   | $ | 9,006,276 |   |

----

|                           |   |   |       |   |      |   |    |       |   |   |      |   |   | Percentage |       |
|--------------------------------|--------|--------|------------|--------|-----------|--------|---------|------------|--------|--------|-----------|--------|--------|------------|------------|
|                           |   |   |       |   | Ceded to  |   |    | Assumed    |   |   |      |   |   | of Amount  |       |
|                           |   | Direct |       |   | Other     |   |    | from Other |   |   | Net       |   |   | Assumed    |       |
|                           |   | Amount |       |   | Companies |   |    | Companies  |   |   | Amount    |   |   | to Net     |       |
| 2010                           |   |   |       |   |      |   |    |       |   |   |      |   |   |       |       |
| Life Insurance in force ($000) |   | $      | 1,202,208  |   |      | $      | 76,042  |       |   | $      | 1,801,414 |   |   | $          | 2,927,580  |   |   |   | 61.5% |   |
|                           |   |   |       |   |      |   |    |       |   |   |      |   |   |       |       |   |   |   |   |   |
| Premiums:                      |   |   |       |   |      |   |    |       |   |   |      |   |   |       |       |   |   |   |   |   |
| Life Insurance                 |   | $      | 36,554,612 |   |      | $      | 601,049 |       |   | $      | 2,384,637 |   |   | $          | 38,338,200 |   |   |   | 6.2% |   |
| Accident and Health Insurance  |   |   | 190,237    |   |      |   | -       |       |   |   | -         |   |   |       | 190,237    |   |   |   | 0.0% |   |
| Total premiums                 |   | $      | 36,744,849 |   |      | $      | 601,049 |       |   | $      | 2,384,637 |   |   | $          | 38,528,437 |   |   |   | 6.2% |   |
|                           |   |   |       |   |      |   |    |       |   |   |      |   |   |       |       |   |   |   |   |   |
| 2009                           |   |   |       |   |      |   |    |       |   |   |      |   |   |       |       |   |   |   |   |   |
| Life Insurance in force ($000) |   | $      | 1,271,014  |   |      | $      | 93,603  |       |   | $      | 1,346,932 |   |   | $          | 2,524,343  |   |   |   | 53.4% |   |
|                           |   |   |       |   |      |   |    |       |   |   |      |   |   |       |       |   |   |   |   |   |
| Premiums:                      |   |   |       |   |      |   |    |       |   |   |      |   |   |       |       |   |   |   |   |   |
| Life Insurance                 |   | $      | 37,410,889 |   |      | $      | 646,318 |       |   | $      | 1,418,707 |   |   | $          | 38,183,278 |   |   |   | 3.7% |   |
| Accident and Health Insurance  |   |   | 231,386    |   |      |   | 1,335   |       |   |   | -         |   |   |       | 230,051    |   |   |   | 0.0% |   |
| Total premiums                 |   | $      | 37,642,275 |   |      | $      | 647,653 |       |   | $      | 1,418,707 |   |   | $          | 38,413,329 |   |   |   | 3.7% |   |
|                           |   |   |       |   |      |   |    |       |   |   |      |   |   |       |       |   |   |   |   |   |
| 2008                           |   |   |       |   |      |   |    |       |   |   |      |   |   |       |       |   |   |   |   |   |
| Life Insurance in force ($000) |   | $      | 1,303,722  |   |      | $      | 125,065 |       |   | $      | 1,150,687 |   |   | $          | 2,329,344  |   |   |   | 49.4% |   |
|                           |   |   |       |   |      |   |    |       |   |   |      |   |   |       |       |   |   |   |   |   |
| Premiums:                      |   |   |       |   |      |   |    |       |   |   |      |   |   |       |       |   |   |   |   |   |
| Life Insurance                 |   | $      | 35,133,624 |   |      | $      | 649,964 |       |   | $      | 1,269,658 |   |   | $          | 35,753,318 |   |   |   | 3.6% |   |
| Accident and Health Insurance  |   |   | 227,908    |   |      |   | 162     |       |   |   | 233       |   |   |       | 227,979    |   |   |   | 0.1% |   |
| Total premiums                 |   | $      | 35,361,532 |   |      | $      | 650,126 |       |   | $      | 1,269,891 |   |   | $          | 35,981,297 |   |   |   | 3.5% |   |

----

|                                                                                              |   |       |       |   | Additions  |   |      | Deductions |   |   |       |   |
|---------------------------------------------------------------------------------------------------|--------|------------|------------|--------|------------|--------|-----------|------------|--------|--------|------------|--------|
|                                                                                              |   | Balance at |       |   | Charged to |   |      | Disposals  |   |   | Balance    |   |
|                                                                                              |   | Beginning  |       |   | Costs and  |   |      | and        |   |   | at End of  |   |
|                                                                                              |   | of Year    |       |   | Expenses   |   |      | Write-offs |   |   | Year       |   |
| For the Year Ended December 31, 2010                                                              |   |       |       |   |       |   |      |       |   |   |       |   |
| Accumulated depreciation on real estate                                                           |   | $          | 3,939,272  |   |       | $      | 1,105,580 |       |   | $      | (104,625   | )      |   | $ | 4,940,227 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Allowance for losses on mortgage loans on real estate and construction loans held for investment. |   |       | 6,808,803  |   |       |   | 630,133   |       |   |   | (368,494   | )      |   |   | 7,070,442 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Accumulated depreciation on property and equipment                                                |   |       | 19,133,583 |   |       |   | 1,811,931 |       |   |   | (4,710,259 | )      |   |   | 16,235,255 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Allowance for doubtful accounts on receivables                                                    |   |       | 2,183,056  |   |       |   | 918,256   |       |   |   | (1,105,965 | )      |   |   | 1,995,347 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Allowance for doubtful accounts on collateral loans                                               |   |       | 652,498    |   |       |   | 120,000   |       |   |   | (391,992   | )      |   |   | 380,506 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| For the Year Ended December 31, 2009                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Accumulated depreciation on real estate                                                           |   | $          | 5,009,571  |   |       | $      | 842,641   |       |   | $      | (1,912,940 | )      |   | $ | 3,939,272 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Allowance for losses on mortgage loans on real estate and construction loans held for investment. |   |       | 4,780,467  |   |       |   | 3,166,043 |       |   |   | (1,137,707 | )      |   |   | 6,808,803 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Accumulated depreciation on property and equipment                                                |   |       | 17,688,418 |   |       |   | 1,722,446 |       |   |   | (277,281   | )      |   |   | 19,133,583 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Allowance for doubtful accounts on receivables                                                    |   |       | 1,983,293  |   |       |   | 1,229,668 |       |   |   | (1,029,905 | )      |   |   | 2,183,056 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Allowance for doubtful accounts on collateral loans                                               |   |       | 555,146    |   |       |   | 128,778   |       |   |   | (31,426    | )      |   |   | 652,498 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| For the Year Ended December 31, 2008                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Accumulated depreciation on real estate                                                           |   | $          | 4,340,390  |   |       | $      | 672,721   |       |   | $      | (3,540     | )      |   | $ | 5,009,571 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Allowance for losses on mortgage loans on real estate and construction loans held for investment. |   |       | 1,435,131  |   |       |   | 4,338,553 |       |   |   | (993,217   | )      |   |   | 4,780,467 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Accumulated depreciation on property and equipment                                                |   |       | 15,664,046 |   |       |   | 2,052,019 |       |   |   | (27,647    | )      |   |   | 17,688,418 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Allowance for doubtful accounts on receivables                                                    |   |       | 1,293,185  |   |       |   | 1,034,202 |       |   |   | (344,094   | )      |   |   | 1,983,293 |   |
|                                                                                              |   |       |       |   |       |   |      |       |   |   |       |   |   |   |   |   |
| Allowance for doubtful accounts on collateral loans                                               |   |       | 492,089    |   |       |   | 166,000   |       |   |   | (102,943   | )      |   |   | 555,146 |   |

----

|   | 21 | Subsidiaries of the Registrant |
|--------|----|--------------------------------|

|   | 31.1 | Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|---------------------------------------------------------------------------------------------------------------|

|   | 31.2 | Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002 |
|--------|------|---------------------------------------------------------------------------------------------------------------|

|   | 32.1 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

|   | 32.2 | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
|--------|------|------------------------------------------------------------------------------------------------------------------------|

----