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 September 30, 2001            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                   3,874,566
-------------------------------------        ---------------------------------
         Title of Class                      Number of Shares Outstanding as of
                                                     September 30, 2001


Class C Common Stock, $.20 par value                    5,762,729
------------------------------------        ----------------------------------
         Title of Class                     Number of Shares Outstanding as of
                                                    September 30, 2001


<PAGE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                                    FORM 10Q

                        QUARTER ENDED SEPTEMBER 30, 2001

                                TABLE OF CONTENTS


                         PART I - FINANCIAL INFORMATION



Item 1 Financial Statements                                    Page No.
------                                                        --------

         Consolidated Statement of Earnings - Nine and
         Three months ended September 30, 2001 and 2000
         (unaudited).............................................3

         Consolidated Balance Sheet - September 30, 2001
         (unaudited)and December 31, 2000 .......................4-5

         Consolidated Statement of Cash Flows -
         Nine months ended September 30, 2001 and 2000
         (unaudited).............................................6

         Notes to Consolidated Financial Statements..............7-9


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....................................14-15

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

                                        2

<PAGE>
<TABLE>
<CAPTION>



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

                                               Nine Months Ended            Three Months Ended
                                                 September 30,                  September 30,
Revenues:                                    2001            2000            2001           2000
--------                                     ----            ----            ----           ----
<S>                                      <C>              <C>             <C>             <C>
Insurance premiums and
   other considerations                  $10,019,159      $9,921,476      $3,435,975      $3,321,587
Net investment income                      9,600,420       8,946,121       3,040,440       3,051,914
Net mortuary and cemetery sales            9,250,976       7,532,068       2,880,537       2,345,776
Realized gains on investments
   and other assets                          120,006          37,294         116,020           5,727
Mortgage fee income                       26,763,907      17,095,397       9,574,016       5,987,232
Other                                        105,495          85,909          50,497          19,220
                                        ------------    ------------    ------------    ------------
   Total revenues                         55,859,963      43,618,265      19,097,485      14,731,456

Benefits and expenses:
                                                                                        ------------
Death benefits                             3,951,069       3,237,944       1,160,311         753,519
Surrenders and other policy benefits       1,155,853       1,193,033         319,299        (169,173)
Increase in future policy benefits         4,172,498       4,434,555       1,628,704       2,224,220
Amortization of deferred policy
   acquisition costs and cost of
   insurance acquired                      2,920,863       3,560,269         971,917       1,242,677
General and administrative expenses:
   Commissions                            20,487,597      13,607,401       7,228,474       4,668,286
   Salaries                                7,065,512       5,873,284       2,825,330       1,940,123
   Other                                   8,663,668       7,052,318       2,694,761       2,414,573
Interest expense                           2,175,012       1,487,213         558,330         593,099
Cost of goods and services sold
  of the mortuaries and cemeteries         3,162,785       2,403,645         899,293         742,985
                                        ------------    ------------    ------------    ------------
   Total benefits and expenses            53,754,857      42,849,662      18,286,419      14,410,309

Earnings before income taxes               2,105,106         768,603         811,066         321,147
Income tax expense                          (572,559)       (189,467)       (217,899)        (79,151)
Minority interest (income)
   loss of subsidiary                         47,196         (48,026)         12,010         (17,366)
                                        ------------    ------------    ------------    ------------

      Net earnings                        $1,579,743        $531,110        $605,177        $224,630
                                        ============    ------------    ============    ============

Net earnings per common share                  $0.35           $0.12           $0.14           $0.05
                                        ============    ============    ============    ============
   Weighted average outstanding
      common shares                        4,450,839       4,290,775       4,450,839       4,238,724
                                        ============    ============    ============    ============

Net earnings per common
   share-assuming dilution                     $0.35           $0.12           $0.14           $0.05
                                        ============    ============    ============    ============

   Weighted average outstanding
      common shares assuming-dilution      4,451,366       4,328,662       4,451,510       4,299,717
                                        ============    ============    ============    ============

See accompanying notes to consolidated financial statements.
</TABLE>

                                        3

<PAGE>



                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET



                                              September 30, 2001   December 31,
                                                  (Unaudited)         2000
                                                --------------     -----------
Assets:
-------
Insurance-related investments:
Fixed maturity securities held
   to maturity, at amortized cost                $28,281,815        $39,384,168
Fixed maturity securities available
   for sale, at market                            23,307,682         23,504,989
Equity securities available for sale,
   at market                                       2,484,807          2,774,077
Mortgage loans on real estate                     15,758,876         17,435,178
Real estate, net of accumulated
   depreciation                                    8,147,910          8,564,395
Policy, student and other loans                   11,293,258         11,277,742
Short-term investments                             5,868,358          1,027,927
                                               -------------      -------------
      Total insurance-related
         investments                              95,142,706        103,968,476
Restricted assets
   of cemeteries and mortuaries                    5,226,724          4,841,819
Cash                                               7,644,473         11,275,030
Receivables:
   Trade contracts                                 6,381,552          5,342,380
   Mortgage loans sold to investors               43,280,514         26,886,162
   Receivable from agents                          2,104,422          2,225,784
   Receivable from officers                          105,200            111,500
   Other                                           1,250,414          3,503,320
                                               -------------      -------------
      Total receivables                           53,122,102         38,069,146
   Allowance for doubtful accounts                (1,689,106)        (1,656,223)
                                               -------------      -------------
   Net receivables                                51,432,996         36,412,923
Policyholder accounts on deposit
   with reinsurer                                  7,254,114          7,434,750
Land and improvements held for sale                8,350,834          8,485,523
Accrued investment income                          1,333,057          1,302,552
Deferred policy acquisition costs                 12,556,615         12,043,527
Property, plant and equipment, net                10,841,091         10,824,700
Cost of insurance acquired                         7,821,388          8,729,264
Excess of cost over net assets
   of acquired subsidiaries                        1,090,418          1,172,599
Other                                                586,627            695,683
                                               -------------      -------------
      Total assets                              $209,281,043       $207,186,846
                                               =============      =============


















See accompanying notes to consolidated financial statements.

                                        4

<PAGE>



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


                                        September 30, 2001       December 31,
                                           (Unaudited)              2000
                                         --------------          -----------
Liabilities:
------------
Future life, annuity, and other
   policy benefits                           $140,449,413     $140,000,344
Unearned premium reserve                        1,729,590        1,754,980
Bank loans payable                              8,198,263        9,805,118
Notes and contracts payable                     3,862,274        4,240,830
Estimated future costs of
   pre-need sales                               7,905,901        7,119,544
Payable to endowment care fund                     43,238               --
Accounts payable                                1,052,051        1,242,407
Funds held under reinsurance treaties           1,388,100        1,417,216
Other liabilities and
   accrued expenses                             4,923,489        4,115,920
Income taxes                                    6,990,842        6,124,512
                                            -------------    -------------
      Total liabilities                       176,543,161      175,820,871

Minority interest                               4,178,645        4,624,614

Stockholders' Equity:
--------------------
Common stock:
      Class A: $2 par value,
         authorized 10,000,000
         shares, issued 5,107,630
         shares in 2001 and 5,107,631
         shares in 2000                        10,215,260       10,215,262
      Class C: $0.20 par value,
         authorized 7,500,000 shares,
         issued 5,827,805 shares in
         2001 and 2000                          1,165,561        1,165,561
                                            -------------    -------------
Total common stock                             11,380,821       11,380,823
Additional paid-in capital                     10,054,714       10,054,714
Accumulated other comprehensive
   income, net of deferred taxes                1,074,886          836,751
Retained earnings                               9,411,049        7,831,306
Treasury stock at cost (1,233,064
  Class A shares and 65,078 Class C shares in
      2001 and 2000 held
      by affiliated companies)                 (3,362,233)      (3,362,233)
                                            -------------    -------------
Total stockholders' equity                     28,559,237       26,741,361
                                            -------------    -------------
   Total liabilities and
      stockholders' equity                   $209,281,043     $207,186,846
                                            =============    =============













See accompanying notes to consolidated financial statements.

                                        5

<PAGE>



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



                                             Nine Months Ended September 30,
                                                  2001             2000
                                                  ----             ----
Cash flows from operating activities:
      Net cash provided by (used in)
      operating activities                    $(5,594,384)     $5,024,387
                                             ------------    ------------

Cash flows from investing activities:
   Securities held to maturity:
      Purchase - fixed maturity securities       (402,995)     (4,798,597)
      Calls and maturities - fixed
        maturity securities                    11,555,252       4,000,900
   Securities available for sale:
      Purchases - equity securities                --            (120,812)
      Sales - equity securities                    11,382          --
      Calls and maturities - fixed
         maturity securities                    1,064,816       1,321,827
   Purchases of short-term investments        (13,415,431)     (4,988,744)
   Sales of short-term investments              8,575,000       5,385,814
   Purchases of restricted assets                (384,905)       (458,668)
   Mortgage, policy, and other loans made      (2,741,158)     (1,977,673)
   Payments received for mortgage,
     policy, and other loans                    4,606,735       3,991,477
   Purchases of property, plant,
      and equipment                              (776,042)       (698,952)
   Purchases of real estate                       (49,472)       (845,408)
                                             ------------    ------------

         Net cash provided by
            (used in) investing activities       8,043,182         811,164
                                              ------------    ------------

Cash flows from financing activities:
   Annuity receipts                              5,368,875       6,616,212
   Annuity withdrawals                          (9,462,819)    (10,705,423)
   Repayment of bank loans and
      notes and contracts payable               (1,985,411)     (1,674,226)
   Net change in line of credit
      for financing of mortgage loans               --          (8,537,023)
   Purchase of treasury stock                       --            (815,121)
                                              ------------    ------------
   Net cash (used in) provided by
      financing activities                      (6,079,355)    (15,115,581)
                                              ------------    ------------
Net change in cash                              (3,630,557)     (9,280,030)

Cash at beginning of period                     11,275,030      12,422,864
                                              ------------    ------------

Cash at end of period                           $7,644,473      $3,142,834
                                              ============    ============















See accompanying notes to consolidated financial statements.

                                        6

<PAGE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                   (Unaudited)

1.  Basis of Presentation

The accompanying  unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States
of America 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  accounting  principles  generally
accepted in the United States of America 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 three and nine months ended  September 30, 2001,  are
not  necessarily  indicative  of the results  that may be expected  for the year
ending  December 31, 2001. For further  information,  refer to the  consolidated
financial statements and footnotes thereto for the year ended December 31, 2000,
included in the Company's Annual Report on Form 10-K (file number 0-9341).

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America 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 nine  months  ended  September  30, 2001 and 2000,  total  comprehensive
income amounted to $1,817,878 and $700,326,  respectively.  For the three months
ended September 30, 2001,  total  comprehensive  income amounted to $628,622 and
$534,953, respectively.

3.   Capital Stock

In  accordance  with SFAS 128, the basic and diluted  earnings per share amounts
were calculated as follows:

                                              Nine Months Ended September 30,
                                                         2001            2000
                                                         ----            ----
Numerator:
  Net income                                          $1,579,743     $531,110
                                                      ==========   ==========

Denominator:
      Denominator for basic
        earnings per share--
        weighted-average shares                        4,450,839    4,290,775
                                                      ----------   ----------

      Effect of dilutive securities:
        Employee stock options                               527       37,887
        Stock appreciation rights                             --           --
                                                      ----------   ----------

      Dilutive potential
        common shares                                        527       37,887
                                                      ----------   ----------

      Denominator for diluted earnings
        per share-adjusted weighted-
        average shares and assumed
        conversions                                    4,451,366    4,328,662
                                                      ==========   ==========

      Basic earnings per share                             $0.35        $0.12
                                                      ==========   ==========

      Diluted earnings per share                           $0.35        $0.12
                                                      ==========   ==========

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
                               September 30, 2001
                                   (Unaudited)



3.  Capital Stock

                                             Three Months Ended September 30,
                                             2001                    2000
                                             ----                    ----
Numerator:
      Net income                          $605,177        $224,630
                                        ==========      ==========

Denominator:
      Denominator for basic
        earnings per share--
        weighted-average shares          4,450,839       4,238,724
                                        ----------      ----------

      Effect of dilutive securities:
        Employee stock options                 671          60,993
        Stock appreciation rights              --              --
                                        ----------      ----------

      Dilutive potential
        common shares                          671          60,993
                                        ----------      ----------

      Denominator for diluted earnings
        per share-adjusted weighted-
        average shares and assumed
        conversions                      4,451,510       4,299,717
                                        ==========      ==========

      Basic earnings per share               $0.14           $0.05
                                        ==========      ==========

      Diluted earnings per share             $0.14           $0.05
                                        ==========      ==========

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
                                                    September 30, 2001
                                                        (Unaudited)



4.  Business Segment

                                 Life           Cemetery/                                          Reconciling
                               Insurance        Mortuary          Mortgage        Corporate           Items       Consolidated
                               ---------        --------          --------        ---------           -----       ------------

<S>                          <C>             <C>              <C>                <C>            <C>              <C>
For the Nine Months Ended
   September 30, 2001
   Revenues from
      external customers .   $  15,462,026    $  10,117,519    $  30,280,254    $         164    $        --      $  55,859,963

   Intersegment revenues .       2,823,155             --               --          2,878,394       (5,701,549)            --

   Segment profit                (101,476)         237,561        1,489,157          479,864             --          2,105,106

   Identifiable assets         196,852,974       36,825,841        5,712,935        3,299,250      (33,409,957)     209,281,043

For the Nine Months Ended
   September 30, 2000
   Revenues from
      external customers        16,126,298        8,097,388       19,394,507               72             --         43,618,265

   Intersegment revenues         2,338,051             --               --          2,905,826       (5,243,877)            --

   Segment profit                  292,744         (373,705)        (134,015)         983,579             --            768,603

   Identifiable assets         194,296,776       34,311,249        3,224,196        2,952,276      (31,241,308)     203,543,189

For the Three Months Ended
   September 30, 2001
   Revenues from
      external customers         5,131,849        3,246,750       10,718,861               25             --         19,097,485

   Intersegment revenues           912,630             --               --            897,216       (1,809,846)            --

   Segment profit                   18,674           81,685          926,422         (215,715)            --            811,066

For the Three Months Ended
   September 30, 2000
   Revenues from
      external customers         5,344,140        2,536,565        6,850,737               14             --         14,731,456

   Intersegment revenues           837,007             --               --            973,207       (1,810,214)            --

   Segment profit                  178,400         (166,598)          (3,027)         312,372             --            321,147

                                        9

<PAGE>
</TABLE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 30, 2001
                                   (Unaudited)


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 lower interest rates by originating  and refinancing
mortgage loans.

During the nine months ended  September  30, 2001,  Security  National  Mortgage
Company  ("SNMC")  experienced  increases  in revenue  and  expenses  due to the
increase  in  loan  volume  of  its  operations.   SNMC  is  a  mortgage  lender
incorporated under the laws of the State of Utah. SNMC is approved and regulated
by the Federal Housing Administration (FHA), a department of the U.S. Department
of Housing and Urban Development (HUD), to originate mortgage loans that qualify
for government  insurance in the event of default by the borrower.  SNMC obtains
loans  primarily from  independent  brokers and  correspondents.  SNMC funds the
loans from internal cash flows and lines of credit from financial  institutions.
SNMC receives fees from origination points paid by the borrowers and service and
release premiums received from third party investors who purchase the loans from
SNMC.  SNMC sells all of its loans to third party  investors and does not retain
servicing to these loans. SNMC pays the brokers and  correspondents a commission
for loans  that are  brokered  through  SNMC.  SNMC  originated  and sold  5,812
($836,124,000) and 3,735  ($496,095,000)  loans respectively for the nine months
ended September 30, 2001 and 2000.

Results of Operations

Nine Months Ended September 30, 2001 Compared to Nine Months Ended September 30,
2000

Total revenues  increased by $12,242,000,  or 28.1%, to $55,860,000 for the nine
months ended  September  30, 2001,  from  $43,618,000  for the nine months ended
September  30,  2000.  Contributing  to this  increase in total  revenues  was a
$9,669,000  increase  in  mortgage  fee  income,  a  $654,000  increase  in  net
investment income, and a $1,719,000 increase in net mortuary and cemetery sales.

Insurance premiums and other  considerations  increased by $98,000,  or 1.0%, to
$10,019,000  for the nine months ended  September 30, 2001,  from $9,921,000 for
the  comparable  period in 2000.  This  increase was primarily due to additional
premiums from increased sales of traditional life products of the Company.

Net investment income increased by $654,000, or 7.3%, to $9,600,000 for the nine
months ended September 30, 2001,  from  $8,946,000 for the comparable  period in
2000. This increase was primarily  attributable to additional interest earned as
a result of a greater  number of loan  originations  during  the nine  months of
2001.

Net mortuary and cemetery sales increased by $1,719,000, or 22.8%, to $9,251,000
for  the  nine  months  ended  September  30,  2001,  from  $7,532,0900  for the
comparable  period  in 2000.  This  increase  was  primarily  due to  additional
pre-need cemetery sales.

Realized gains on investments and other assets increased by $83,000,  or 221.8%,
to $120,000 for the nine months ended  September 30, 2001,  from $37,000 for the
comparable  period in 2000. This increase was the result of the  condemnation of
Company property for highway improvements.

                                       10

<PAGE>



Mortgage fee income  increased by $9,669,000,  or 56.6%,  to $26,764,000 for the
nine months ended September 30, 2001, from $17,095,000 for the comparable period
in 2000.  This increase was primarily  attributable  to a greater number of loan
originations  during  the  nine  months  of 2001  due to  lower  interest  rates
resulting in more borrowers refinancing their mortgage loans.

Total benefits and expenses were  $53,755,000,  or 96.2%,  of total revenues for
the nine months ended September 30, 2001, as compared to $42,850,000,  or 98.2%,
of total revenues for the comparable period in 2000.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy  benefits  increased by an aggregate of $413,000,  or 4.7%, to $9,279,000
for the nine months ended September 30, 2001, from $8,866,000 for the comparable
period in 2000.  This  increase was primarily the result of an increase in death
claims.

Amortization of deferred policy acquisition costs and cost of insurance acquired
decreased  by  $639,000,  or 18.0%,  to  $2,921,000  for the nine  months  ended
September 30, 2001,  from  $3,560,000  for the comparable  period in 2000.  This
decrease was primarily due to the  adjustment  of the  amortization  rate to the
Company's current actuarial assumptions.

General and  administrative  expenses  increased  by  $9,684,000,  or 36.5%,  to
$36,217,000 for the nine months ended  September 30, 2001, from  $26,533,000 for
the comparable period in 2000. 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 nine months of
2001.

Interest  expense  increased by $688,000,  or 46.2%,  to $2,175,000 for the nine
months ended September 30, 2001,  from  $1,487,000 for the comparable  period in
2000.  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 goods and services sold of the mortuaries  and  cemeteries  increased by
$759,000,  or 31.6%, to $3,163,000 for the nine months ended September 30, 2001,
from  $2,404,000 for the comparable  period in 2000. This increase was primarily
due to additional pre- need cemetery sales.

Third Quarter of 2001 Compared to Third Quarter of 2000

Total revenues  increased by $4,366,000,  or 29.6%, to $19,097,000 for the three
months ended  September 30, 2001,  from  $14,731,000  for the three months ended
September  30,  2000.  Contributing  to this  increase in total  revenues  was a
$3,587,000  increase in mortgage  fee income,  a $114,000  increase in insurance
premiums and other  considerations  and a $535,000  increase in net mortuary and
cemetery sales.

Insurance premiums and other considerations  increased by $114,000,  or 3.4%, to
$3,436,000 for the three months ended  September 30, 2001,  from  $3,322,000 for
the  comparable  period in 2000.  This  increase was primarily due to additional
premiums from increased sales of traditional life products of the Company.

Net investment income decreased by $12,000,  or .4%, to $3,040,000 for the three
months ended September 30, 2001,  from  $3,052,000 for the comparable  period in
2000.  This  decrease was the result of lower  interest  income  earnings due to
lower interest rates on short-term and long-term investments.

Net mortuary and cemetery sales  increased by $535,000,  or 22.8%, to $2,881,000
for  the  three  months  ended  September  30,  2001,  from  $2,346,000  for the
comparable  period  in 2000.  This  increase  was  primarily  due to  additional
pre-need cemetery sales.

Realized  gains on  investments  and other  assets  increased  by  $111,000,  or
1,925.8% to $116,000 for the nine months ended  September 30, 2001,  from $5,000
for  the  comparable  period  in  2000.  This  increase  was the  result  of the
condemnation of Company property for highway improvements.

                                       11

<PAGE>



Mortgage fee income  increased by  $3,587,000,  or 59.9%,  to $9,574,000 for the
three months ended September 30, 2001, from $5,987,000 for the comparable period
in 2000.  This increase was primarily  attributable  to a greater number of loan
originations  during the third  quarter  of 2001,  due to lower  interest  rates
resulting in more borrowers refinancing their mortgage loans.

Total benefits and expenses were  $18,286,000,  or 95.8%,  of total revenues for
the three months ended September 30 2001, as compared to $14,410,000,  or 97.8%,
of total revenues for the comparable period in 2000.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy benefits  increased by an aggregate of $300,000,  or 10.7%, to $3,108,000
for  the  three  months  ended  September  30,  2001,  from  $2,808,000  for the
comparable period in 2000. This increase was primarily the result of an increase
in death claims.

Amortization of deferred policy acquisition costs and cost of insurance acquired
decreased  by  $271,000  or  21.8%,  to  $972,000,  for the three  months  ended
September 30, 2001,  from  $1,243,000  for the comparable  period in 2000.  This
decrease was in line with actuarial assumptions.

General  and  administrative  expenses  increased  by  $3,726,000  or 41.3%,  to
$12,749,000  for the three months ended  September 30, 2001, from $9,023,000 for
the comparable period in 2000. 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 third quarter
of 2001.

Interest expense decreased by $35,000, or 5.9%, to $558,000 for the three months
ended September 30, 2001, from $593,000 for the comparable  period in 2000. This
decrease  was the  result of lower  interest  expense on  borrowings  due to the
decrease in lending rates.

Cost of mortuaries and cemeteries goods and services sold increased by $156,000,
or 21.0%,  to $899,000  for the three  months ended  September  30,  2001,  from
$743,000 for the comparable  period in 2000.  This increase was primarily due to
additional 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  $51,589,000  as of  September  30,  2001,
compared to $62,859,000 as of

                                       12

<PAGE>



December 31, 2000.  This  represents 54% and 60% of the total  insurance-related
investments  as of  September  30, 2001,  and  December 31, 2000,  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 nine  categories  used  for  rating  bonds.  At  September  30,  2001,  .79%
($409,000)  and at December 31, 2000,  .68%  ($429,000) of the  Company's  total
investment  in bonds were invested in bonds in rating  categories  three through
nine, 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 September 30,
2001,  and  December  31,  2000,  the life  insurance  subsidiary  exceeded  the
regulatory criteria.

The Company's total  capitalization  of  stockholders'  equity and bank debt and
notes  payable  was  $40,620,000  as of  September  30,  2001,  as  compared  to
$40,787,000  as of  December  31,  2000.  Stockholders'  equity as a percent  of
capitalization  increased  to 70%  as of  September  30,  2001,  from  66% as of
December 31, 2000.

Lapse  rates  measure the amount of  insurance  terminated  during a  particular
period.  The Company's lapse rate for life insurance in 2000 was 15% as compared
to a rate of 10% for 1999.  The 2001  lapse  rate is  approximately  the same as
2000.

At September 30, 2001, $22,846,000 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, 2000.

                                       13

<PAGE>



                                                Part II  Other Information:

Item 1.        Legal Proceedings

               An action was brought  against the Company in May 2001, by Glenna
               Brown Thomas  individually and as personal  representative of the
               Estate of Lynn W. Brown (Third Judicial Court,  Salt Lake County,
               State of Utah,  010904432).  The  action  asserts  that  Memorial
               Estates  delivered  to Lynn W.  Brown  three  stock  certificates
               representing  2,000  shares in 1970 and 1971.  Mr.  Brown died in
               1972.  It is  asserted  that at the time the  2,000  shares  were
               issued  and  outstanding,  such  represented  a 2%  ownership  of
               Memorial  Estates.  It is  alleged  Mr.  Brown  was  entitled  to
               preemptive rights and that after the issuance of the stock to Mr.
               Brown there were  further  issuances of stock  without  providing
               written  notice to Mr.  Brown or his  estate  with  respect to an
               opportunity  to  purchase  more stock.  It is asserted  among the
               other things that the  plaintiff  "has the right to a transfer of
               Brown's shares to Thomas on Defendants'  (which includes Security
               National Financial Corporation as well as Memorial Estates, Inc.)
               books and to restoration of Brown's proportion of share ownership
               in Memorial at the time of his death by issuance  and delivery to
               Thomas of sufficient  shares of Defendant's  publicly  traded and
               unrestricted  stock in exchange  for the 2,000 shares of Memorial
               stock and  payment  of all  dividends  from the date of  Thomas's
               demand,   as   required   by  Article  XV  of  the   Articles  of
               Incorporation." Based on present information, the Company intends
               to vigorously defend the matter,  including an assertion that the
               statute of limitations bars the claims.

               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, if 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)

                                       14

<PAGE>



     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)
     Q.  Promissory Note with George R. Quist. (12)
     R.  Settlement Agreement with Capitol Indemnity Corporation, George A.
         Fait, and Joel G. Fait. (13)

    (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.
    (13)   Incorporated by reference from Quarterly Report on Form 10-Q, as
           filed on August 21, 2000.

    (b)    Reports on Form 8-K:

                NONE


                                       15

<PAGE>


                                   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: November 16, 2001          By:    George R. Quist,
                                         ----------------
                                         Chairman of the Board,
                                         President and Chief Executive Officer
                                         (Principal Executive Officer)


DATED: November 16, 2001          By:    Stephen M. Sill
                                         ---------------
                                         Vice President, Controller and
                                         Chief Financial Officer
                                         (Principal Financial and
                                         Accounting Officer)

                                       16

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