<PAGE>

                        UNITED STATES
             SECURITIES AND EXCHANGE COMMISSION
                      WASHINGTON, D.C.

                          FORM 10Q

      QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
               SECURITIES EXCHANGE ACT OF 1934


For Quarter Ended June 30, 1997          Commission File Number: 0-9341


          SECURITY NATIONAL  FINANCIAL CORPORATION
                  Exact Name of Registrant.


           UTAH                              87-0345941   
---------------------------------        -----------------
(State or other jurisdiction             IRS Identification Number
of incorporation or organization)

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



Registrant's telephone number,
   including Area Code                       (801) 264-1060
                                             --------------

Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Sections 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12
months (or for shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.

                    YES  XX         NO

Indicate the number of shares outstanding of each of the
issuer's classes of common stock, net of treasury stock, as of
the close of the period covered by this report.


Class A Common Stock, $2.00 par value         3,468,258      
--------------------------------------    -----------------
      Title of Class                      Number of Shares
                                          Outstanding as of
                                          June 30, 1997

Class C Common Stock, $.20 par value          4,912,485      
--------------------------------------    ------------------
      Title of Class                      Number of Shares
                                          Outstanding as of
                                          June 30, 1997

<PAGE>


 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                          FORM 10Q

                 QUARTER ENDED JUNE 30, 1997

                      TABLE OF CONTENTS


               PART I - FINANCIAL INFORMATION


                                                       Page No.
                                                       --------
<TABLE>
<CAPTION>

Item 1. Financial Statements

      <S>                                                  <C>
      Consolidated Statements of Earnings - Six
      months ended June 30, 1997 and 1996, and
      three months ended June 30, 1997 and 1996. . . . . . 3

      Consolidated Balance Sheets - June 30,
      1997 and December 31, 1996 . . . . . . . . . . . . 4-5

      Consolidated Statements of Cash Flows -
      Six months ended June 30, 1997 and
      June 30, 1996. . . . . . . . . . . . . . . . . . . 6-7

      Notes to Consolidated Financial
      Statements . . . . . . . . . . . . . . . . . . . . . 8


Item 2 Management's Discussion and Analysis. . . . . . .8-12

                 PART II - OTHER INFORMATION
  
      Other Information. . . . . . . . . . . . . . . . . .13

      Signature Page . . . . . . . . . . . . . . . . . . .14

</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                SECURITY NATIONAL FINANCIAL CORPORATION
                           AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF EARNINGS



                    Six Months Ended June 30,      Three Months Ended June 30, 
                   1997                 1996        1997                1996
                (Unaudited)          (Unaudited)  (Unaudited)      (Unaudited)
                ----------           ----------   ----------       ----------
<S>              <C>                 <C>           <C>            <C>
REVENUE:
Insurance premiums
  and other
  considerations  $ 2,983,294        $ 2,972,085   $1,510,671     $1,445,455 
Net investment 
  income            3,466,068          3,865,189    1,692,641      1,942,126 
Net mortuary and
  cemetery sales    4,772,676          4,294,942    2,272,313      2,153,830 
Realized gains on
  investments and
   other assets       269,575            (26,024)     233,548        (31,922)
Mortgage fee income 2,887,947          4,481,704    1,261,828      1,962,344 
Other                  22,210             42,957       11,278         11,429 
                  -----------        -----------   ----------     ----------
  Total Revenue   $14,401,770        $15,630,853   $6,982,279     $7,483,262 


BENEFITS AND EXPENSES:
Death benefits      1,211,108         1,022,159       682,684        524,800 
Surrenders and other
  policy benefits     774,609           808,220       508,155        492,756 
Increase in future
  policy benefits   1,298,064         1,446,469       555,612         501,508 
Amortization of
  deferred policy
  acquisition costs
  and cost of insurance
  acquired            639,355           645,122       324,527         310,855 
General and
  administrative
  expenses:
  Commissions       2,397,780          3,005,000    1,127,487       1,420,000 
  Salaries          2,435,367          2,402,790    1,169,323       1,319,971 
  Other             2,949,368          3,673,707    1,437,731       1,683,929 
Interest expense      537,851            763,632      260,329         359,148 
Cost of goods and
  services sold
  of the mortuaries
  and cemeteries    1,451,098          1,200,305      719,236         611,569 
                   ----------        -----------   ----------      ----------
    Total benefits
    and expenses   13,694,600         14,967,404    6,785,084       7,224,536 
                  -----------        -----------   ----------      ----------
Earnings before
  income taxes        707,170            663,449      197,195         258,726 
Income tax expense   (165,112)          (186,045)     (47,818)        (72,552)
                  -----------        -----------  -----------      ----------
  Net earnings    $   542,058        $   477,404  $   149,377      $  186,174
                  ===========        ===========  ===========      ==========
  Earnings per
    share               $0.13              $0.13        $0.04           $0.05 
                        =====              =====        =====           =====
Weighted average
  outstanding
  common shares     4,024,952          3,816,832    4,019,197       3,816,832
                 ============        ===========   ==========      ==========
</TABLE>

See accompanying notes to consolidated financial statements.

<PAGE>
<TABLE>
<CAPTION>

                         SECURITY NATIONAL FINANCIAL CORPORATION
                                    AND SUBSIDIARIES
                              CONSOLIDATED BALANCE SHEETS



                                     June 30, 1997               December 31,
                                       (Unaudited)                  1996
                                     --------------              ------------
<S>                                    <C>                      <C>
Assets:
Investments:
Fixed maturity securities
  held to maturity, at amortized
  cost                                  $47,041,539             $47,934,684 
Equity securities available for sale,
  at market                               3,960,205               4,133,105 
Mortgage loans on real estate             8,063,808               9,809,379 
Real estate, net of accumulated
  depreciation                            7,708,748               7,808,255 
Policy loans                              2,841,928               3,021,155 
Other loans                                 146,273                 218,437 
Short-term investments                    4,802,407               2,258,283 
                                        -----------             -----------
    Total insurance related
       investments                       74,564,908              75,183,298 
Restricted assets of cemeteries
  and mortuaries                          3,696,552               3,454,622 
Cash                                      8,618,578               3,301,084 
Receivables:
  Trade contracts                         4,352,740               4,514,010 
  Mortgage loans sold to investors        7,006,540              13,455,123 
  Receivable from agents                    762,686                 670,439 
  Other                                     330,358                 292,680 
                                        -----------             -----------
    Total receivables                    12,452,324              18,932,252 
  Allowance for doubtful accounts        (1,703,023)             (1,862,599)
                                        -----------             -----------
  Net receivables                        10,749,301              17,069,653 
Land and improvements held for sale       8,489,074               8,456,302 
Accrued investment income                 1,042,710               1,040,242 
Deferred policy acquisition costs         4,267,827               4,277,560 
Property, plant and equipment, net        6,425,185               6,513,980 
Cost of insurance acquired                3,619,079               3,748,654 
Excess of cost over net assets
  of acquired subsidiaries                1,352,188               1,370,708 
Other                                       463,419                 293,400 
                                        -----------            ------------
    Total Assets                        $123,288,821           $124,709,503 
                                        ============           ============

</TABLE>

See accompanying notes to consolidated financial statements.

<PAGE>
<TABLE>
<CAPTION>

                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                     CONSOLIDATED BALANCE SHEETS (Continued)



                                     June 30, 1997            December 31,
                                      (Unaudited)                 1996    
                                     -------------            ------------
<S>                                   <C>                      <C>
Liabilities:
Future life, annuity, and other
  policy benefits                      $77,178,617             $76,962,062 
Line of credit for financing
  of mortgage loans                         --                   1,211,890 
Bank loans payable                       6,285,357               6,768,119 
Notes and contracts payable              3,629,934               4,509,921 
Estimated future costs of
   pre-need sales                        5,963,095               5,874,387 
Payable to endowment care fund             137,396                  70,617 
Accounts payable                         1,265,604               1,199,920 
Other liabilities and accrued
   expenses                              2,034,937               1,902,046 
Income taxes                             2,906,073               2,742,513 
                                       -----------            ------------
    Total Liabilities                   99,401,013             101,241,475 

Stockholders' Equity:
  Common stock:
    Class A: $2 par value, authorized
      10,000,000 shares, issued 4,108,922
      shares in 1997 and 4,110,709 shares
      in 1996                            8,217,844               8,221,418 
    Class C: $0.20 par value, authorized
      7,500,000 shares, issued 4,966,025
      shares in 1997 and 4,967,072 shares
      in 1996                              993,203                 993,413 
                                        ----------              ----------
  Total common stock                     9,211,047               9,214,831 
  Additional paid-in capital             8,675,386               8,675,386 
  Unrealized appreciation of
    investments                            176,585                 259,915 
  Retained earnings                      7,664,370               7,118,528 
  Treasury stock at cost (640,664 Class
    A shares and 53,540 Class C shares
    in 1997; 631,576 Class A shares and
    53,540 Class C shares in 1996, held
    by affiliated companies)            (1,839,580)             (1,800,632)
                                      ------------            ------------
  Total Stockholders' Equity            23,887,808              23,468,028 
                                      ------------            ------------
  Total Liabilities and 
     Stockholders' Equity             $123,288,821            $124,709,503 
                                      ============            ============
</TABLE>

See accompanying notes to consolidated financial statements.


<PAGE>
<TABLE>
<CAPTION>

                          SECURITY NATIONAL FINANCIAL CORPORATION
                                    AND SUBSIDIARIES
                           CONSOLIDATED STATEMENTS OF CASH FLOWS

                                                Six Months Ended June 30,
                                               1997                 1996
                                           (Unaudited)          (Unaudited)
                                           ----------           ----------
<S>                                         <C>                  <C>
Cash flows from operating activities:
  Net earnings                              $542,058             $477,404 
  Adjustments to reconcile net earnings
      to net cash provided by operating
       activities:
    Realized gains on investments and 
      other assets                          (269,575)              20,226 
    Depreciation                             380,216              717,017 
    Provision for losses on accounts
      and loans receivable                  (159,575)            (211,340)
    Amortization of goodwill, premiums,
      and discounts                           (1,953)               3,364 
    Income taxes                             163,560              185,874 
    Policy acquisition costs deferred       (500,047)            (399,394)
    Policy acquisition costs amortized       509,780              521,691 
    Cost of insurance acquired amortized     129,575              123,413 
  Change in assets and liabilities net of
      effects from purchases and disposals
      of subsidiaries:
    Land and improvements held for sale      (32,772)            (473,816)
    Future life and other benefits           943,023            1,435,139 
    Receivables for mortgage loans sold    6,448,583           10,936,467 
    Other operating assets and liabilities   212,919              100,347 
                                         -----------          -----------
      Net cash provided by operating
       activities                          8,365,792           13,436,392 

Cash flows from investing activities:
  Securities held to maturity:
    Purchase of fixed maturity 
      securities                          (3,157,492)            (300,752)
    Calls and maturities - fixed
     maturity securities                   4,098,016            3,426,352 
  Securities available for sale:
    Purchases - equity securities           (166,695)              (5,980)
    Proceeds from sale of equity 
      securities                             498,934              101,570 
  Purchases of short-term investments     (3,192,862)          (5,176,198)
  Sales of short-term investments            648,738            2,037,928 
  Purchases of restricted assets            (241,930)            (157,462)
  Mortgage, policy, and other loans made    (362,837)          (2,161,220)
  Payments received for mortgage, policy,
    and other loans                        2,359,799              657,634 
  Purchases of property, plant, and
     equipment                              (146,046)            (547,921)
  Purchases of real estate                  (45,868)             (87,949)
                                         ----------         ------------
      Net cash provided by (used in)
      investing activities                  291,757           (2,213,998)
</TABLE>

<PAGE>
<TABLE>
<CAPTION>

                      SECURITY NATIONAL FINANCIAL CORPORATION
                                 AND SUBSIDIARIES
                 CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)



                                           Six Months Ended June 30,
                                          1997                 1996
                                      (Unaudited)          (Unaudited)
                                      -----------          ----------
<S>                                   <C>                 <C>
Cash flows from financing activities:
  Annuity receipts                     1,322,402            1,551,084 
  Annuity withdrawals                 (2,048,870)          (2,461,412)
  Repayment of bank loans and
    notes and contracts payable       (1,362,749)            (686,177)
  Proceeds from borrowings on bank
    loans and notes and contracts
      payable                             -0-                  42,489 
  Purchase of Treasury Stock             (38,948)               -0-   
  Net decrease in line of credit for
    financing of mortgage loans       (1,211,890)         (11,300,360)
                                    ------------        -------------
    Net cash used in financing 
      activities                      (3,340,055)         (12,854,376)
                                    ------------        -------------
    Net change in cash                 5,317,494           (1,631,982)
Cash at beginning of period            3,301,084            7,710,155 
                                    ------------        -------------

Cash at end of period               $  8,618,578        $   6,078,173
                                    ============        =============
</TABLE>

<PAGE>

       SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
         Notes to Consolidated Financial Statements
                   June 30, 1997 and 1996
                         (Unaudited)


1.  Basis of Presentation
    ---------------------
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
accounting principles for interim financial information and
with the instructions to Form 10-Q and Article 10 of
Regulation S-X.  Accordingly, they do not include all of the
information and footnotes required by generally accepted
accounting principles for complete financial statements.  In
the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair
presentation have been included.  Operating results for the
six months ended June 30, 1997, are not necessarily indicative
of the results that may be expected for the year ending
December 31, 1997.  For further information, refer to the
consolidated financial statements and footnotes thereto for
the year ended December 31, 1996, included in the Company's
Annual Report on Form 10-K (file number 0-9341). 
Reclassification to certain 1996 balances have been made to
conform with the 1997 presentation.

            MANAGEMENT'S DISCUSSION AND ANALYSIS
                    Results of Operations

Overview

The Company's operations over the last several years generally
reflect three trends or events which the Company expects to
continue:  (i) increased attention to "niche" insurance
products, such as the Company's funeral plan policies,
annuities, and limited pay accident policies; (ii) emphasis on
high margin cemetery and mortuary business; and (iii)
capitalizing on the strong economy in the intermountain west
by originating and refinancing mortgage loans.

Three Months Ended June 30, 1997 as Compared to Three Months
Ended June 30, 1996

Total revenues decreased by $501,000, or 6.7%, to $6,982,000
for the three months ended June 30, 1997, from $7,483,000 for
the three months ended June 30, 1996.  Contributing to this
reduction in total revenues was a $249,000 decrease in net
investment income and a $700,000 decrease in mortgage fee
income.  These decreases were partially offset by a $118,000
increase in net mortuary and cemetery sales, a $66,000
increase in insurance premiums and other considerations and a
$266,000 increase in realized gains on investments.

Insurance premiums and other considerations increased by
$66,000, or 4.6%, to $1,511,000 for the three months ended
June 30, 1997, from $1,445,000 for the comparable period in
1996.  This increase was primarily due to an increase in
policies in force.

Net investment income decreased by $249,000, or 12.8%, to
$1,693,000 for the three months ended June 30, 1997, from
$1,942,000 for the comparable period in 1996.  This reduction
was attributable to the Company maintaining larger cash and
short term investment balances and warehousing fewer mortgage
loans during the second quarter of 1997.

<PAGE>

Net mortuary and cemetery sales increased by $118,000, or
5.5%, to $2,272,000 for the three months ended June 30, 1997,
from $2,154,000 for the comparable period in 1996.  This
increase was primarily related to additional preneed sales
from the opening of Singing Hills Memorial Park Cemetery in
San Diego, California during the third quarter of 1996. 
Preneed sales of cemetery and mortuary products also increased
at the Company's other cemeteries and mortuaries.

Mortgage fee income decreased by $700,000, or 35.7%, to
$1,262,000 for the three months ended June 30, 1997, from
$1,962,000 for the comparable period in 1996.  This reduction
was primarily attributable to fewer loan originations during
the second quarter of 1997 as a result of higher interest
rates during that period.  Although the Company experienced
more loan refinancing activity during 1996, it increased its
volume in the home purchase financing market during the second
quarter of 1997, which has a higher profit margin.  The demand
for housing in the intermountain area remains strong.

Realized gains on investments increased by $266,000 to
$234,000 for the three months ended June 30, 1997 from a loss
of $32,000 for the comparable period in 1996.  This increase
was the result of the sale of investments in securities during
the second quarter of 1997.

Total benefits and expenses were $6,785,000, or 97.2% of total
revenues for the three months ended June 30, 1997, as compared
to $7,225,000, or 96.6% of total revenues for the three months
ended June 30, 1996.

Death benefits, surrenders and other policy benefits and
increase in future policy benefits increased by $227,000, or
14.9%, to $1,746,000 for the three months ended June 30, 1997,
from $1,519,000 for the comparable period in 1996.  This
increase was primarily the result of an increase in death
claims and health benefits paid.

Amortization of deferred policy acquisition costs increased by
$14,000, or 4.5%, to $325,000, for the three months ended June
30, 1997, from $311,000 for the comparable period in 1996. 
This increase was expected since policies in force have
increased from one year ago.

General and administrative expenses decreased by $689,000, or
15.6%, to $3,735,000 for the three months ended June 30, 1997,
from $4,424,000 for the comparable period in 1996.  This
reduction in general and administrative expenses primarily
resulted from a decrease in commissions and other expenses due
to fewer mortgage loan originations having been made by the
Company's mortgage subsidiary.

Interest expense decreased by $99,000, or 27.6%, to $260,000
for the three months ended June 30, 1997, from $359,000 for
the comparable period in 1996.  This decrease was primarily
due to fewer mortgage loan originations by the Company's
mortgage subsidiary.

Cost of goods and services sold of the mortuaries and
cemeteries increased by $107,000, or 17.5%, to $719,000 for
the three months ended June 30, 1997, from $612,000 for the
comparable period in 1996.  This increase was consistent with
the increase in net mortuary and cemetery sales.

<PAGE>

Six Months Ended June 30, 1997 as Compared to Six Months Ended
June 30, 1996

Total revenues decreased by $1,229,000, or 7.9%, to
$14,402,000 for the six months ended June 30, 1997, from
$15,631,000 for the six months ended June 30, 1996. 
Contributing to this reduction in total revenues was a
$399,000 decrease in net investment income and a $1,594,000
decrease in mortgage fee income.  These decreases were
partially offset by a $478,000 increase in net mortuary and
cemetery sales, and a $296,000 increase in realized gains in
investments.

Net investment income decreased by $399,000, or 10.3%, to
$3,466,000 for the six months ended June 30, 1997, from
$3,865,000 for the comparable period in 1996.  This decrease
was attributable to the Company maintaining larger cash and
short term investment balances and warehousing fewer mortgage
loans during the first six months of 1997.

Net mortuary and cemetery sales increased by $478,000, or
11.1%, to $4,773,000 for the six months ended June 30, 1997,
from $4,295,000 for the comparable period in 1996.  This
increase was primarily related to additional preneed sales
from the opening of Singing Hills Memorial Park Cemetery in
San Diego, California during the third quarter of 1996. 
Preneed sales of cemetery and mortuary products also increased
at the Company's other cemeteries and mortuaries.

Mortgage fee income decreased by $1,594,000, or 35.6%, to
$2,888,000 for the six months ended June 30, 1997, from
$4,482,000 for the comparable period in 1996.  This reduction
was primarily attributable to fewer loan originations during
the first six months of 1997 as a result of higher interest
rates during that period.  Although the Company experienced
more loan refinancing activity during 1996, it increased its
volume in the home purchase financing market during the first
six months of 1997, which has a higher profit margin.  The
demand for housing in the intermountain area remains strong.

Realized gains on investments increased by $296,000 to
$270,000 for the three months ended June 30, 1997 from a loss
of $26,000 for the comparable period in 1996.  This increase
was the result of the sale of investments in securities during
the second quarter of 1997.

Total benefits and expenses were $13,695,000, or 95.1% of
total revenues for the six months ended June 30, 1997, as
compared to $14,967,000, or 95.8% of total revenues for the
six months ended June 30, 1996.

Death benefits, surrenders and other policy benefits and
increase in future policy benefits increased by $7,000, or
 .2%, to $3,284,000 for the six months ended June 30, 1997,
from $3,277,000 for the comparable period in 1996.  This
slight increase was primarily the result of a decrease in
annuity interest expense due to fewer annuity policies in
force.

Amortization of deferred policy acquisition costs decreased by
$6,000, or .9%, to $639,000, for the six months ended June 30,
1997, from $645,000 for the comparable period in 1996.  This
decrease was expected since policies in force are essentially
the same as a year ago.

<PAGE>

General and administrative expenses decreased by $1,299,000,
or 14.3%, to $7,783,000 for the six months ended June 30,
1997, from $9,082,000 for the comparable period in 1996.  This
reduction in general and administrative expenses primarily
resulted from a decrease in commissions and other expenses due
to fewer mortgage loan originations having been made by the
Company's mortgage subsidiary.

Interest expense decreased by $226,000, or 29.6%, to $538,000
for the six months ended June 30, 1997, from $764,000 for the
comparable period in 1996.  This decrease was primarily due to
fewer mortgage loan originations by the Company's mortgage
subsidiary.

Cost of goods and services sold of the mortuaries and
cemeteries increased by $251,000, or 20.9%, to $1,451,000 for
the six months ended June 30, 1997, from $1,200,000 for the
comparable period in 1996.  This increase was consistent with
the increase in net mortuary and cemetery sales.

               Liquidity and Capital Resources

The Company's life insurance subsidiary and cemetery and
mortuary subsidiaries realize cash flow from premiums,
contract payments and sales on personal services rendered for
cemetery and mortuary business, from interest and dividends on
invested assets, and from the proceeds from the maturity of
held-to-maturity investments, or sale of other investments. 
The mortgage subsidiary realizes cash flow from fees generated
by originating and refinancing mortgage loans and interest
earned on mortgages sold to investors.  The Company considers
these sources of cash flow to be adequate to fund future
policyholder and cemetery and mortuary liabilities which
generally are long-term and adequate to pay current
policyholder claims, annuity payments, expenses on the
issuance of new policies,  the maintenance of existing
policies, debt service, and to meet operating expenses.

The Company attempts to match the duration of invested assets
with its policyholder and cemetery and mortuary liabilities. 
The Company may sell investments other than those held to
maturity in the portfolio to help in this timing; however, to
date, that has not been necessary.  The Company purchases
short-term investments on a temporary basis to meet the
expectations of short-term requirements of the Company's
products.  The Company's investment philosophy is intended to
provide a rate of return which will persist during the
expected duration of policyholder and cemetery and mortuary
liabilities regardless of future interest rate movements.

The Company's investment policy is to invest predominately in
fixed maturity securities and warehouse mortgage loans on a
short-term basis before selling the loans to investors in
accordance with the requirements and laws governing the life
insurance subsidiary.  Bonds owned by the insurance subsidiary
amounted to $47,036,000, at amortized cost as of June 30, 1997
compared to $47,906,000 at amortized cost as of December 31,
1996.  This represents 58% of the total insurance related
investments in 1997 as compared to 63% in 1996.  Generally all
bonds owned by the life insurance subsidiary are rated by the
National Association of Insurance Commissioners (NAIC).  Under
this rating system, there are six categories used for rating
bonds.  At June 30, 1997, 4.0% ($1,950,000) and at December
31, 1996, 4.1% ($1,994,000) of the Company's total investment
in bonds were invested in bonds in rating categories three
through six which are considered non-investment grade.

<PAGE>

The Company intends to hold its fixed income securities,
including high-yield securities, in its portfolio to maturity. 
Business conditions, however, may develop in the future which
may indicate a need for a higher level of liquidity in the
investment portfolio.  In that event the Company believes it
could sell short-term investment grade securities before
liquidating high-yielding longer term securities.

The Company is subject to risk based capital guidelines
established by statutory regulators requiring minimum capital
levels based on the perceived risk of assets, liabilities,
disintermediation, and business risk.  At December 31, 1996
and 1995, the life subsidiary exceeded the regulatory
criteria.

The Company's capitalization of stockholders' equity and long
term debt was $33,803,000 for the six months ended June 30,
1997 as compared to $34,352,000 for the six months ended June
30, 1996.  Stockholders' equity as a percent of capitalization
increased to 70.7% for the six months ended June 30, 1997 from
65.0% for the six months ended June 30, 1996 and as a percent
of assets increased to 19.4% from 17.5%, respectively.

Lapse rates measure the amount of insurance terminated during
a particular period.  The Company's lapse rate for life
insurance for 1996 was 12% as compared to a rate of 10.5% for
1995.  The 1997 lapse rate is approximately the same as 1996.

In February 1997, the Company purchased all of the outstanding
shares of common stock of Crystal Rose Funeral Home, Inc., an
Arizona based mortuary, for a total consideration of $547,000.
The purchase price included a note to the former owner in the
amount of $297,000.

At June 30, 1997, $9,864,000 of the Company's consolidated
stockholders' equity represents the statutory stockholders'
equity of the Company's insurance subsidiary.  The life
insurance subsidiary cannot pay a dividend to its parent
company without the approval of insurance regulatory
authorities.

<PAGE>

<TABLE>
<CAPTION>

<S>      <C>
Part II  Other Information:

Item 1.   Legal Proceedings
          NONE

Item 2.   Changes in Securities
          NONE

Item 3.   Defaults Upon Senior Securities
          NONE

Item 4.   Submission of Matters to a Vote of Security Holders
          NONE

Item 5.   Other Information
          NONE

Item 6.   Exhibits and Reports on Form 8-K
          NONE

(a)(3)  Exhibits

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

Exhibit

  Table No       Document
  --------      ---------
(a)(3)  Exhibits:

                 EX-27

</TABLE>

<PAGE>

                         SIGNATURES

Pursuant to the requirements of the Securities and Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
  
  
                         REGISTRANT
           SECURITY NATIONAL FINANCIAL CORPORATION
                         Registrant



DATED: August 14, 1997        By:   George R. Quist,
       ---------------              ---------------
                                    Chairman of the Board,
                                    President and Chief
                                    Executive Officer
                                    (Principal Executive
                                    Officer)


DATED: August 14, 1997        By:   Scott M. Quist
       ---------------              --------------
                                    First Vice President,
                                    General Counsel and
                                    Treasurer (Principal
                                    Financial and Accounting
                                    Officer)

<PAGE>