SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C.

                                    FORM 10-Q

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




For Quarter Ended June 30, 2000           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 Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the  preceding 12 months (or for such  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, as of the latest practicable date.



Class A Common Stock, $2.00 par value                  3,689,893
-------------------------------------      ----------------------------------
         Title of Class                    Number of Shares Outstanding as of
                                                    June 30, 2000


Class C Common Stock, $.20 par value                   5,488,312
-------------------------------------      ----------------------------------
         Title of Class                    Number of Shares Outstanding as of
                                                    June 30, 2000
<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                                    FORM 10Q

                           QUARTER ENDED JUNE 30, 2000

                                TABLE OF CONTENTS


                         PART I - FINANCIAL INFORMATION



Item 1 Financial Statements                                        Page No.

         Consolidated Statements of Earnings -
         Six and Three months ended June 30, 2000 and 1999.............3

         Consolidated Balance Sheets - June 30, 2000
         and December 31, 1999.......................................4-5

         Consolidated Statements of Cash Flows -
         Six months ended June 30, 2000 and 1999.......................6

         Notes to Consolidated Financial Statements.................7-10


Item 2      Management's Discussion and Analysis...................10-13

Item 3      Quantitative and Qualitative Disclosure of
            Market Risk...............................................13

                           PART II - OTHER INFORMATION

            Other Information......................................13-15

            Signature Page............................................16

                                        2
<PAGE>
<TABLE>
<CAPTION>

                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                       CONSOLIDATED STATEMENTS OF EARNINGS
                                   (Unaudited)

                                           Six Months Ended June 30,               Three Months Ended June 30,
Revenues:                                    2000             1999                       2000              1999
<S>                                     <C>             <C>                         <C>              <C>
Insurance premiums and
   other considerations                 $  6,599,889    $  6,360,008                 $  3,206,115    $  3,010,592
Net investment income                      5,894,207       5,346,571                    3,090,458       2,805,006
Net mortuary and cemetery sales            5,186,292       5,258,203                    2,491,271       2,902,585
Realized gains on investments
   and other assets                           31,567         225,658                       (1,158)         55,965
Mortgage fee income                       11,108,165       6,719,818                    6,466,954       3,618,416
Other                                         66,689         778,062                       14,203         741,142
                                        ------------     -----------                  -----------     -----------
   Total revenue                          28,886,809      24,688,320                   15,267,843      13,133,706

Benefits and expenses:
Death benefits                             2,484,425       2,383,293                    1,294,389       1,392,483
Surrenders and other policy benefits       1,362,206       2,535,433                      768,130       1,322,294
Increase in future policy benefits ..      2,210,335       1,444,071                      862,627         601,892
Amortization of deferred policy
   acquisition costs and cost of
   insurance acquired                      2,317,592       2,526,176                    1,196,563       1,221,623
General and administrative expenses:
   Commissions                             8,939,115       5,249,708                    5,168,667       2,823,607
   Salaries                                3,933,161       3,749,167                    1,993,311       1,959,014
   Other                                   4,637,745       4,082,757                    2,406,049       2,139,098
Interest expense                             894,114         490,259                      561,276         228,997
Cost of goods and services sold
  of the mortuaries and cemeteries ..      1,660,660       1,724,774                      814,451         987,943
                                         -----------     -----------                  -----------     -----------
   Total benefits and expenses            28,439,353      24,185,638                   15,065,463      12,676,951

Earnings before income taxes                 447,456         502,682                      202,380         456,755
Income tax expense                          (110,316)       (159,413)                     (51,254)       (171,394)
Minority interest income
   of subsidiary                             (30,660)        (63,631)                     (11,852)        (94,750)
                                        ------------    ------------                 ------------    ------------
      Net earnings                      $    306,480    $    279,638                 $    139,274    $    190,611
                                        ============    ============                 ============    ============
Net earnings per common share                  $0.07           $0.06                        $0.03           $0.04
                                               =====           =====                        =====           =====
   Weighted average outstanding
      common shares                        4,307,694       4,407,069                    4,238,724       4,388,357
                                           =========       =========                   ==========      ==========
Net earnings per common
   share-assuming dilution                     $0.07           $0.06                        $0.03           $0.04
                                               =====           =====                        =====           =====
   Weighted average outstanding
      common shares assuming-dilution      4,356,876       4,407,069                     4,259,794       4,388,357
                                          ==========      ==========                    ==========      ==========
</TABLE>

See accompanying notes to consolidated financial statements.

                                        3
<PAGE>

                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS



                                           June 30, 2000     December 31,
                                            (Unaudited)         1999
Assets:                                    --------------    ----------
------
Insurance-related investments:
Fixed maturity securities held
   to maturity, at amortized cost       $  41,943,663    $  39,629,851
Fixed maturity securities available
   for sale, at market                     22,675,530       24,119,190
Equity securities available for sale,
   at market                                5,677,291        5,745,213
Mortgage loans on real estate              17,865,330       18,926,628
Real estate, net of accumulated
   depreciation                             8,262,056        7,629,952
Policy, student and other loans            11,403,096       11,607,993
Short-term investments                        508,380        1,290,310
                                         ------------     ------------
      Total insurance-related
         investments                      108,335,346      108,949,137
Restricted assets
   of cemeteries and mortuaries             4,560,894        4,258,987
Cash                                        4,824,676       12,422,864
Receivables:
   Trade contracts                          5,075,613        4,232,030
   Mortgage loans sold to investors        28,137,545       29,071,913
   Receivable from agents                   2,293,212        2,272,624
   Receivable from officers                   115,100          118,400
   Other                                    4,217,825        3,847,079
                                         ------------      -----------
      Total receivables                    39,839,295       39,542,046
   Allowance for doubtful accounts         (1,556,368)      (1,467,954)
                                         ------------      -----------
   Net receivables                         38,282,927       38,074,092
Policyholder accounts on deposit
   with reinsurer                           7,747,099        7,806,866
Land and improvements held for sale         8,522,656        8,522,687
Accrued investment income                   1,517,439        1,493,013
Deferred policy acquisition costs          11,076,103       10,630,086
Property, plant and equipment, net         10,621,070       10,566,508
Cost of insurance acquired                  8,381,308        9,597,306
Excess of cost over net assets
   of acquired subsidiaries                 1,227,387        1,305,333
Other                                         710,826          671,558
                                       --------------   --------------
     Total assets                       $ 205,807,731    $ 214,298,437
                                        =============    =============

















See accompanying notes to consolidated financial statements.

                                        4


<PAGE>

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


                                            June 30, 2000     December 31,
                                              (Unaudited)        1999
Liabilities:                               ---------------  ---------------
-----------
Future life, annuity, and other
   policy benefits                        $ 139,184,908    $ 138,501,316
Unearned premium reserve                      1,481,659        1,866,523
Line of credit for financing
   of mortgage loans                          2,300,000        8,687,023
Bank loans payable                           10,148,574       10,768,098
Notes and contracts payable                   3,707,023        3,885,684
Estimated future costs of
   pre-need sales                             6,900,220        6,817,685
Accounts payable                                761,619          804,133
Funds held under reinsurance
   treaties                                   1,471,630        1,475,512
Other liabilities and
   accrued expenses                           3,886,876        3,219,166
Income taxes                                  5,657,306        5,736,860
                                           ------------     ------------
      Total liabilities                     175,499,815      181,762,000

Minority interest                             4,467,971        6,046,744

Stockholders' Equity:
Common stock:
      Class A: $2 par value,
         authorized 10,000,000
         shares, issued 4,864,238
         shares in 2000 and 4,863,731
         shares in 1999                       9,728,476        9,727,462
      Class C: $0.20 par value,
         authorized 7,500,000 shares,
         issued 5,550,291 shares in
         2000 and 5,555,350 shares
         in 1999                              1,110,058        1,111,070
                                            -----------      -----------
Total common stock                           10,838,534       10,838,532
Additional paid-in capital                   10,015,940       10,015,942
Accumulated other comprehensive
   income, net of deferred taxes                524,584          665,691
Retained earnings                             7,823,120        7,516,640
Treasury stock at cost (1,174,345
      Class A shares and 61,979 Class C
      shares in 2000; 966,139 Class A
      shares and 61,979 Class C shares
      in 1999 held by affiliated
      companies)                             (3,362,233)      (2,547,112)
                                          -------------    -------------
Total stockholders' equity                   25,839,945       26,489,693
                                          -------------    -------------
   Total liabilities and
      stockholders' equity                $ 205,807,731    $ 214,298,437
                                          =============    =============












See accompanying notes to consolidated financial statements.

                                        5
<PAGE>

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



                                                 Six Months Ended June 30,
                                                  2000             1999
                                                --------        ----------
Cash flows from operating activities:
      Net cash provided by
         operating activities                 $  2,349,410    $  2,984,501

Cash flows from investing activities:
   Securities held to maturity:
      Purchase - fixed maturity securities      (4,798,597)             --
      Calls and maturities - fixed
        maturity securities                      2,520,856       3,657,999
   Securities available for sale:
      Purchases - equity securities                (92,563)        (43,759)
      Sales - equity securities                     71,913          43,781
      Calls and maturities - fixed
         maturity securities                     1,214,748       1,171,236
   Purchases of short-term investments          (2,917,187)     (6,401,565)
   Sales of short-term investments               3,699,117      10,493,964
   Purchases of restricted assets                 (301,907)        (47,148)
   Mortgage, policy, and other loans made       (2,244,580)     (4,022,131)
   Payments received for mortgage,
     policy, and other loans                     3,523,682       2,144,338
   Purchases of property, plant,
      and equipment                               (446,141)       (348,422)
   Purchases of real estate                       (808,421)       (303,626)
   Disposal of property, plant
      and equipment                                   (240)        179,343
                                                ----------      ----------
          Net cash provided by
             (used in) investing activities       (579,320)      6,524,010
                                                ----------      ----------
Cash flows from financing activities:
   Annuity receipts                              4,643,939       5,213,072
   Annuity withdrawals                          (6,011,888)     (6,217,085)
   Repayment of bank loans and
      notes and contracts payable                 (798,185)     (2,271,368)
   Net change in line of credit
      for financing of mortgage loans           (6,387,023)     (5,493,999)
   Purchase of treasury stock                     (815,121)       (339,830)
                                               -----------     -----------
   Net cash used in
      financing activities                      (9,368,278)     (9,109,210)
                                               -----------      ----------
Net change in cash                              (7,598,188)        339,301
Cash at beginning of period                     12,422,864       6,670,996
                                              ------------    ------------
Cash at end of period                         $  4,824,676    $  7,070,297
                                              ============    ============














See accompanying notes to consolidated financial statements.

                                        6
<PAGE>

            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 30, 2000
                                   (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, 2000, are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 2000. For further information,  refer to the consolidated financial
statements and footnotes thereto for the year ended December 31, 1999,  included
in the Company's Annual Report on Form 10-K (file number 0-9341).

The preparation of financial  statements in conformity  with generally  accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial  statements and accompanying notes.
Actual results could differ from those estimates.

The estimates  susceptible to  significant  change are those used in determining
the liability for future policy  benefits and claims,  those used in determining
valuation  allowances  for  mortgage  loans on real  estate,  and those  used in
determining  the  estimated  future  costs for  pre-need  sales.  Although  some
variability  is inherent in these  estimates,  management  believes  the amounts
provided are adequate.

2.   Comprehensive Income
     --------------------
For the six months  ended June 30,  2000 and 1999,  total  comprehensive  income
(loss)  amounted to $165,373 and $(82,643),  respectively.  For the three months
ended June 30, 2000 and 1999,  total  comprehensive  income amounted to $137,002
and $7,046 respectively.

3.  Capital  Stock  -------------  In  accordance  with SFAS 128,  the basic and
diluted earnings per share amounts were calculated as follows:

                                          Six Months Ended June 30,
                                             2000         1999
                                          ----------    ---------
Numerator:
      Net income                         $  306,480   $  279,638
                                         ==========   ==========
Denominator:
      Denominator for basic
        earnings per share--
        weighted-average shares           4,307,694    4,407,069
                                         ----------   ----------
      Effect of dilutive securities:
        Employee stock options               49,182           --
        Stock appreciation rights                --           --
                                         -----------   ----------
      Dilutive potential
        common shares                        49,182           --
                                         ----------    ----------
      Denominator for diluted earnings
        per share-adjusted weighted-
        average shares and assumed
        conversions                       4,356,876    4,407,069
                                        ===========   ==========
      Basic earnings per share                $0.07        $0.06
                                              =====        =====

      Diluted earnings per share              $0.07        $0.06
                                              =====        =====

There are no dilutive effects on net income for purpose of this calculation.

                                        7
<PAGE>

            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 30, 2000
                                   (Unaudited)

3.    Capital Stock (continued)

                                         Three Months Ended June 30,
                                             2000         1999
Numerator:
      Net income                           $139,274     $190,611
                                          =========     ========
Denominator:
      Denominator for basic
        earnings per share--
        weighted-average shares           4,238,724    4,388,357
                                          ---------    ---------
      Effect of dilutive securities:
        Employee stock options               21,070           --
        Stock appreciation rights                --           --
                                          ---------    ----------
      Dilutive potential
        common shares                        21,070           --
                                          ---------    ----------
      Denominator for diluted earnings
        per share-adjusted weighted-
        average shares and assumed
        conversions                       4,259,794    4,388,357
                                          =========   ==========

      Basic earnings per share                $0.03        $0.04
                                              =====        =====

      Diluted earnings per share              $0.03        $0.04
                                              =====        =====

There are no dilutive effects on net income for purpose of this calculation.

                                        8


<PAGE>
<TABLE>
<CAPTION>

            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 30, 2000
                                   (Unaudited)



4.  Business Segment

                                      Life           Cemetery/                                   Reconciling
                                    Insurance        Mortuary      Mortgage        Corporate        Items        Consolidated
                                    ---------        ---------     --------        ----------   --------------   ------------
<S>                                <C>             <C>            <C>               <C>          <C>             <C>

For the Six Months Ended
   June 30, 2000
-------------------------
      Revenues from
             external customers    $10,782,158     $5,560,823     $12,543,770             $58      $      --     $28,886,809

      Intersegment revenues          1,501,044             --              --       1,932,619     (3,433,663)             --

      Segment profit                   114,344       (207,107)       (130,988)        671,207             --         447,456

      Identifiable assets          195,450,371     34,629,760       3,287,654       2,863,827    (30,423,881)    205,807,731

For the Six Months Ended
   June 30, 1999
------------------------
      Revenues from external
             customers             $11,736,641     $5,623,033      $7,317,485         $11,161        $    --     $24,688,320

      Intersegment revenues            999,088             --              --       1,916,181     (2,915,269)             --

      Segment profit                   261,913        (27,490)       (102,176)        370,435             --         502,682

      Identifiable assets          188,079,920     33,954,833       3,891,320       3,101,586    (24,479,142)    204,548,517

For the Three Months Ended
   June 30, 2000
---------------------------
      Revenues from
             external customers     $5,228,653     $2,683,449      $7,355,704             $37      $      --     $15,267,843

      Intersegment revenues            804,245             --              --         970,193     (1,774,438)             --

      Segment profit                   137,549       (271,551)        (44,644)        381,026             --         202,380


For the Three Months Ended
   June 30, 1999
---------------------------
      Revenues from external
             customers              $6,127,155     $3,079,731      $3,924,015          $2,805        $    --     $13,133,706

      Intersegment revenues            462,846             --              --         958,330     (1,421,176)             --

      Segment profit                   438,927        (80,816)         34,303          64,340             --         456,754

</TABLE>
                                        9
<PAGE>

            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 30, 2000
                                   (Unaudited)


5.   Acquisition of Southern Security Life Insurance Company

On December 17, 1998,  the Company  purchased all of the  outstanding  shares of
common stock of Consolidare Enterprises,  Inc. ("Consolidare") which owned 57.4%
of the  outstanding  shares of common stock of Southern  Security Life Insurance
Company ("Southern  Security").  Since then the Company has purchased 265,770 of
additional shares of Southern Security and owns 71% of the outstanding shares.

Item 2.  Management's Discussion and Analysis

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 and
interest  sensitive  products;  (ii) emphasis on cemetery and mortuary business;
and (iii) capitalizing on the strong economy in the United States by originating
and refinancing mortgage loans.

Results of Operations

Six Months Ended June 30, 2000 Compared to Six Months Ended June 30, 1999

Total revenues  increased by $4,198,000,  or 17.0%,  to $28,887,000  for the six
months ended June 30, 2000,  from  $24,688,000 for the six months ended June 30,
1999.  Contributing to this increase in total revenues was a $4,388,000 increase
in mortgage  fee income,  a $240,000  increase in  insurance  premiums and other
considerations, and a $548,000 increase in net investment income.

Insurance premiums and other considerations  increased by $240,000,  or 3.8%, to
$6,600,000  for the six months  ended June 30,  2000,  from  $6,360,000  for the
comparable  period  in 1999.  This  increase  was  primarily  due to  additional
premiums from new business.

Net investment income increased by $548,000, or 10.2%, to $5,894,000 for the six
months ended June 30, 2000, from  $5,347,000 for the comparable  period in 1999.
This  increase  was  primarily   attributable   to  a  greater  number  of  loan
originations  during the six months of 2000,  due to the  expansion  of business
activities in new geographic markets.

Net mortuary and cemetery sales decreased by $72,000, or 1.4%, to $5,186,000 for
the six months ended June 30, 2000, from $5,258,000 for the comparable period in
1999. This decrease was primarily due to fewer pre-need cemetery sales.

Mortgage fee income  increased by $4,388,000,  or 65.3%,  to $11,108,000 for the
six months ended June 30, 2000,  from  $6,720,000 for the  comparable  period in
1999.  This  increase was  primarily  attributable  to a greater  number of loan
originations  during the six  months of 2000 due to the  expansion  of  business
activities in new geographic markets.

Total benefits and expenses were $28,439,000, or 98.4% of total revenues for the
six months ended June 30, 2000,  as compared to  $24,186,000,  or 98.0% of total
revenues for the comparable period in 1999.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy  benefits  decreased by an aggregate of $306,000,  or 4.8%, to $6,057,000
for the six months  ended June 30,  2000,  from  $6,363,000  for the  comparable
period in 1999.  This  decrease  was  primarily  the  result of a  reduction  in
policyholder account balances.

Amortization of deferred policy acquisition costs and cost of insurance acquired
decreased by $209,000,  or 8.3%, to $2,317,000 for the six months ended June 30,
2000,  from  $2,526,000 for the comparable  period in 1999. This decrease was in
line with actuarial assumptions.

                                       10
<PAGE>

General and  administrative  expenses  increased  by  $4,428,000,  or 33.9%,  to
$17,510,000  for the six months ended June 30, 2000,  from  $13,082,000  for the
comparable period in 1999. This increase  primarily resulted from an increase in
commissions  and other  expenses due to additional  mortgage  loan  originations
having been made by the Company's  mortgage  subsidiary during the six months of
2000 due to the expansion of its business activities in new geographic markets.

Interest expense increased by $404,000, or 82.4%, to $894,000 for the six months
ended June 30, 2000,  from  $490,000  for the  comparable  period in 1999.  This
increase was primarily due to additional  warehouse lines of credit required for
the additional mortgage loan originations by the Company's mortgage subsidiary.

Cost of mortuaries and cemeteries  goods and services sold decreased by $64,000,
or 3.7%, to $1,661,000 for the six months ended June 30, 2000,  from  $1,725,000
for the  comparable  period in 1999.  This  decrease was  primarily due to fewer
pre-need cemetery sales.

Second Quarter of 2000 Compared to Second Quarter of 1999

Total revenues  increased by $2,134,000,  or 16.2%, to $15,268,000 for the three
months ended June 30, 2000, from $13,134,000 for the three months ended June 30,
1999.  Contributing to this increase in total revenues was a $2,849,000 increase
in mortgage  fee income,  a $196,000  increase in  insurance  premiums and other
considerations and a $285,000 increase in net investment income.

Insurance premiums and other considerations  increased by $195,000,  or 6.5%, to
$3,206,000  for the three months ended June 30, 2000,  from  $3,011,000  for the
comparable  period  in 1999.  This  increase  was  primarily  due to  additional
premiums from new business.

Net investment  income  increased by $285,000,  or 10.2%,  to $3,090,000 for the
three months ended June 30, 2000, from  $2,805,000 for the comparable  period in
1999.  This  increase was  primarily  attributable  to a greater  number of loan
originations during the second quarter of 2000, due to the expansion of business
activities in new geographic markets.

Net mortuary and cemetery sales  decreased by $411,000,  or 14.2%, to $2,491,000
for the three months ended June 30, 2000,  from  $2,903,000  for the  comparable
period in 1999. This decrease is primarily due to fewer pre-need cemetery sales.

Mortgage fee income  increased by  $2,849,000,  or 78.7%,  to $6,467,000 for the
three months ended June 30, 2000, from  $3,618,000 for the comparable  period in
1999.  This  increase was  primarily  attributable  to a greater  number of loan
originations  during the second quarter of 2000 due to the expansion of business
activities in new geographic markets.

Total benefits and expenses were $15,065,000, or 98.7% of total revenues for the
three months ended June 30 2000, as compared to  $12,677,000,  or 96.5% of total
revenues for the comparable period in 1999.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy benefits  decreased by an aggregate of $392,000,  or 11.8%, to $2,925,000
for the three months ended June 30, 2000,  from  $3,317,000  for the  comparable
period in 1999.  This  decrease  was  primarily  the  result of a  reduction  in
policyholder account balances.

Amortization of deferred policy acquisition costs and cost of insurance acquired
decreased by $25,000,  or 2.1%, to  $1,197,000,  for the three months ended June
30, 2000, from  $1,222,000 for the comparable  period in 1999. This decrease was
in line with actuarial assumptions.

General  and  administrative  expenses  increased  by  $2,646,000  or 38.2%,  to
$9,568,000  for the three months ended June 30, 2000,  from  $6,922,000  for the
comparable period in 1999. This increase  primarily resulted from an increase in
commissions  and other  expenses due to additional  mortgage  loan  originations
having been made by the Company's mortgage  subsidiary during the second quarter
of  2000  as a  result  of the  expansion  of  its  business  activities  in new
geographic markets.

                                       11
<PAGE>

Interest  expense  increased by $332,000,  or 145.1%,  to $561,000 for the three
months ended June 30, 2000,  from  $229,000 for the  comparable  period in 1999.
This increase was primarily due to additional warehouse lines of credit required
for  the  additional  mortgage  loan  originations  by  the  Company's  mortgage
subsidiary.

Cost of mortuaries and cemeteries goods and services sold decreased by $173,000,
or 17.6%,  to $815,000 for the three months ended June 30, 2000,  from  $988,000
for the  comparable  period in 1999.  This  decrease was  primarily due to fewer
pre-need cemetery sales.

Liquidity and Capital Resources

The Company's life insurance subsidiaries 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 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  predominantly  in fixed maturity
securities,  mortgage loans, 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  subsidiaries.  Bonds  owned  by the  life
insurance  subsidiaries amounted to $64,620,000 as of June 30, 2000, compared to
$63,749,000  as of December 31,  1999.  This  represents  59.6% and 58.5% of the
total insurance-related  investments as of June 30, 2000, and December 31, 1999,
respectively.  Generally, all bonds owned by the life insurance subsidiaries are
rated by the National Association of Insurance Commissioners.  Under this rating
system,  there are six categories  used for rating bonds. At June 30, 2000, 1.5%
($994,000)  and at December 31, 1999,  1.6%  ($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.

The Company has  classified  certain of its fixed income  securities,  including
high-yield  securities,  in its  portfolio  as  available  for  sale,  with  the
remainder  classified as held to maturity.  However,  in accordance with Company
policy,  any such securities  purchased in the future will be classified as held
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 higher-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 June 30, 2000, and
December  31,  1999,  the life  insurance  subsidiary  exceeded  the  regulatory
criteria.

The Company's total  capitalization  of  stockholders'  equity and bank debt and
notes payable was $39,696,000 as of June 30, 2000, as compared to $41,144,000 as
of  December  31,  1999.  Stockholders'  equity as a percent  of  capitalization
increased to 65.1% as of June 30, 2000, from 64.4% as of December 31, 1999.

                                       12
<PAGE>

Lapse  rates  measure the amount of  insurance  terminated  during a  particular
period.  The  Company's  lapse  rate for  life  insurance  in 1999 was  13.2% as
compared to a rate of 6.0% for 1998.  The 2000 lapse rate is  approximately  the
same as 1999.

At June 30, 2000, $21,263,000 of the Company's consolidated stockholders' equity
represents  the statutory  stockholders'  equity of the Company's life insurance
subsidiaries.  The life  insurance  subsidiaries  cannot pay a  dividend  to its
parent company without the approval of insurance regulatory authorities.

Item 3.  Quantitative and Qualitative Disclosure of Market Risk

There have been no  significant  changes since the annual report Form 10-K filed
for the year ended December 31, 1999.

                           Part II Other Information:

Item 1.        Legal Proceedings

               Security   National   Mortgage   Company   ("Security    National
               Mortgage"),  a wholly- owned subsidiary of the Company,  has been
               notified  that it may be subject to an  administrative  action by
               the U.S. Department of Housing and Urban Development  ("HUD"). By
               way of  letter  from  HUD to  Security  National  Mortgage  dated
               February 15, 2000 and  received on February  25,  2000,  Security
               National  Mortgage was advised "that the Mortgagee  Review Board"
               of HUD "is considering an administrative  action against Security
               National Mortgage ... pursuant to 24 CFR Part 25 ... and a civil
               money  penalty  pursuant to 24 CFR part 30 ...."  In the letter,
               HUD  set  forth  alleged   violations  of   HUD/Federal   Housing
               Administration  ("FHA")  requirements  which  included among such
               violations:   (1)  failure  to  comply  with  Security   National
               Mortgage's own policy and procedures  outlined in a July 17, 1997
               letter to HUD; (2)  acceptance  of loans  originated by personnel
               not employed by or not exclusively  employed by Security National
               Mortgage;  (3) acceptance of loans originated by non-HUD approved
               entities;  (4) payment of fees and  compensation  to unauthorized
               entities or individuals in connection with FHA insured mortgages;
               and (5) certification of inaccurate HUD-1s.

               Concerning the administrative action by HUD relating to the above
               allegations,  dependent  upon the  facts and  circumstances,  HUD
               asserts it has alternatives such as settlement,  issuing a letter
               of reprimand,  placing Security National Mortgage on probation or
               even  suspending  or  withdrawing  Security  National  Mortgage's
               approval function as a HUD/FHA lender.  The letter indicates that
               the Mortgagee Review Board intends to seek a civil money penalty.
               With  respect  to any  civil  money  penalty,  which  would be in
               addition  to the  foregoing,  the letter from HUD states that the
               "amount of the civil money  penalty  shall not exceed  $5,500 for
               each such listed or described  violation"  and that a "continuing
               violation may  constitute a separate  violation for each day that
               violation continues."

               Security  National  Mortgage  is allowed to respond in writing to
               what is  asserted  by HUD and the  procedure  permits at a future
               time, if necessary, an evidentiary hearing. Management recognizes
               the serious alternative  sanctions claimed by HUD to be available
               to it including the sanction of the loss of the ability to do FHA
               lending  work.  Recognizing  the  importance  of  the  matter,  a
               detailed  written response to the letter was filed with HUD and a
               meeting  was held with the HUD staff in an effort to insure  that
               Security National Mortgage's position on the matter is fairly and
               properly  presented.  Further  response or decision  has not been
               received from HUD.

               On or about March 6, 2000, Kelly Darrow ("Darrow") filed a Charge
               of   Discrimination   with   the   Labor   Commission   of  Utah,
               Anti-Discrimination  Division against Security  National Mortgage
               Company.  It is asserted that Security National Mortgage violated
               the Americans with  Disabilities  Act of 1990 ("ADA") as amended,
               and the Utah  Anti-Discrimination Act of 1965 ("UAD") as amended,
               for the alleged reasons of "demoted, denied promotion.

                                       13
<PAGE>

               received less pay than others,  denied  reasonable  accommodation
               for ...  disability,  forced to go on contract vendor status, and
               when ...  complained  of the  treatment  ... was  fired."  Darrow
               withdrew  the charge in favor of a "right to sue letter" so as to
               be able to file a suit in federal  court.  Remedies  which may be
               sought   include  back  pay  and   benefits,   attorneys'   fees,
               reinstatement and punitive damages.

               Management   takes  the   position   that   Darrow  was   treated
               appropriately and that Security National Mortgage did not violate
               the ADA or UAD. At this point,  however, a complete evaluation of
               the matter has not been finalized.

               The Company is not a party to any other legal proceedings outside
               the  ordinary  course of the  Company's  business or to any other
               legal  proceedings  which,  adversely  determined,  would  have a
               material adverse effect on the Company or its business.

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

   (a)         Exhibits

     3.  A.     Articles of Restatement of Articles of Incorporation (8)
         B.     Bylaws (1)

     4.  A. Specimen Class A Stock Certificate (1)
         B. Specimen Class C Stock Certificate (1)
         C. Specimen Preferred Stock Certificate and Certificate of Designation
            of Preferred Stock (1)
    10.  A. Restated and Amended Employee Stock Ownership Plan and Trust
            Agreement (1)
         B. Deferred Compensation Agreement with George R. Quist (2)
         C. 1993 Stock  Option Plan (3)
         D. Promissory  Note with Key Bank of Utah (4)
         E. Loan and Security Agreement with Key Bank of Utah (4)
         F. General  Pledge  Agreement with Key Bank of Utah (4)
         G. Note Secured by Purchase Price Deed of Trust and  Assignment of
            Rents with the Carter Family Trust and the Leonard M. Smith
            Family Trust  (5)
         H. Deed of Trust and Assignment of Rents with the Carter Family Trust
            and the Leonard M. Smith Family Trust (5)
         I. Promissory Note with Page and Patricia Greer  (6)
         J. Pledge Agreement with Page and Patricia Greer (6)
         K. Promissory Note with Civil Service Employees Insurance Company (7)
         L. Deferred Compensation Agreement with William C.Sargent (8)
         M. Employment Agreement with Scott M. Quist. (8)
         N. Acquisition Agreement with Consolidare Enterprises, Inc., and
            certain shareholders of Consolidare.   (9)
         O. Agreement and Plan of Merger between Consolidare Enterprises, Inc.,
            and SSLIC Holding Company. (10)
         P. Administrative Services Agreement with Southern Security Life
            Insurance Company. (11)

                                       14
<PAGE>

         Q.     Promissory Note with George R. Quist. (12)
         R.     Settlement Agreement with Capitol Indemnity Corporation,
                George A. Fait, and Joel G. Fait.
         (1)    Incorporated by reference from Registration Statement on
                Form S-1, as filed on June 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 March 31, 1994.
         (4)    Incorporated by reference from Report on Form 8-K, as filed on
                February 24, 1995.
         (5)    Incorporated by reference from Annual Report on Form 10K, as
                filed on March 31, 1995.
         (6)    Incorporated by reference from Report on Form 8-K, as filed on
                May 1, 1995.
         (7)    Incorporated by reference from Report on Form 8-K, as filed on
                January 16, 1996.
         (8)    Incorporated by reference from Annual Report on Form 10-K, as
                filed on March 31, 1998.
         (9)    Incorporated by reference from Report on Form 8-K, as filed
                on May 11, 1998.
        (10)    Incorporated by reference from Report on Form 8-K, as filed on
                January 4, 1999.
        (11)    Incorporated by reference from Report on Form 8-K, as filed on
                March 4, 1999.
        (12)    Incorporated by reference from Annual Report on Form 10-K, as
                filed on April 14, 1999.


    27.  Financial Data Schedule

    (b)  Reports on Form 8-K:

            NONE


                                       15

                                   SIGNATURES

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


                                   REGISTRANT
                     SECURITY NATIONAL FINANCIAL CORPORATION
                                   Registrant



DATED: August 21, 2000           By:    George R. Quist,
       ---------------                  ----------------
                                        Chairman of the Board,
                                        President and Chief Executive Officer
                                        (Principal Executive Officer)


DATED: August 21, 2000           By:    Scott M. Quist
       ---------------                  --------------
                                        First Vice President, General Counsel,
                                        Treasurer (Principal Financial and
                                        Accounting Officer)


                                       16
<PAGE>