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, 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
                                                   September 30, 2000


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

<PAGE>

            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                                    FORM 10Q

                        QUARTER ENDED SEPTEMBER 30, 2000

                                TABLE OF CONTENTS


                         PART I - FINANCIAL INFORMATION



Item 1 Financial Statements                               Page No.
---------------------------                               --------
         Consolidated Statements of Earnings -
         Nine and Three months ended
         September 30, 2000 and 1999 (unaudited).............3

         Consolidated Balance Sheets - September 30, 2000
         (unaudited) and December 31, 1999 ..................4-5

         Consolidated Statements of Cash Flows -
         Nine months ended September 30, 2000 and 1999
         (unaudited).........................................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)

                                        Nine Months Ended September 30,                 Three Months Ended September 30,
Revenues:                                     2000           1999                             2000             1999
---------                                   --------       -------                           ------           ------
<S>                                     <C>             <C>                             <C>              <C>
Insurance premiums and
   other considerations                 $  9,921,476    $ 10,008,484                     $  3,321,587    $  3,648,476
Net investment income                      8,946,121       7,663,760                        3,051,914       2,317,189
Net mortuary and cemetery sales            7,532,068       7,637,360                        2,345,776       2,379,157
Realized gains on investments
   and other assets                           37,294         228,622                            5,727           2,964
Mortgage fee income                       17,095,397      10,483,052                        5,987,232       3,763,234
Other                                         85,909         827,413                           19,220          49,351
                                        ------------    ------------                      -----------     -----------
   Total revenues                         43,618,265      36,848,691                       14,731,456      12,160,371

Benefits and expenses:
Death benefits                             3,237,944       3,434,847                          753,519       1,051,554
Surrenders and other policy benefits       1,193,033       2,958,351                         (169,173)        422,918
Increase in future policy benefits         4,434,555       2,355,085                        2,224,220         911,014
Amortization of deferred policy
   acquisition costs and cost of
   insurance acquired                      3,560,269       3,772,447                        1,242,677       1,246,271
General and administrative expenses:
   Commissions                            13,607,401       8,412,816                        4,668,286       3,163,108
   Salaries                                5,873,284       5,643,863                        1,940,123       1,894,696
   Other                                   7,052,318       5,849,460                        2,414,573       1,766,703
Interest expense                           1,487,213         795,202                          593,099         304,943
Cost of goods and services sold
  of the mortuaries and cemeteries         2,403,645       2,515,351                          742,985         790,577
                                         -----------     -----------                      -----------    ------------
   Total benefits and expenses            42,849,662      35,737,422                       14,410,309      11,551,784

Earnings before income taxes                 768,603       1,111,269                          321,147         608,587
Income tax expense                          (189,467)       (368,844)                         (79,151)       (209,431)
Minority interest income
   of subsidiary                             (48,026)       (162,635)                         (17,366)        (99,004)
                                        ------------    ------------                     ------------    ------------
      Net earnings                      $    531,110    $    579,790                     $    224,630    $    300,152
                                        ------------    ------------                     ------------    ------------

Net earnings per common share                  $0.12           $0.13                            $0.05           $0.07
                                               =====           =====                            =====           =====
   Weighted average outstanding
      common shares                        4,290,775       4,380,510                        4,238,724       4,335,339
                                          ==========      ==========                       ==========      ==========
Net earnings per common
   share-assuming dilution                    $0.12           $0.13                            $0.05           $0.07
                                              =====           =====                            =====           =====
   Weighted average outstanding
      common shares assuming-dilution      4,328,662       4,380,510                        4,299,717       4,335,339
                                          ==========      ==========                       ==========      ==========
</TABLE>

See accompanying notes to consolidated financial statements.

                                        3
<PAGE>


                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEETS



                                        September 30, 2000         December 31,
                                           (Unaudited)                 1999
Assets:                                ------------------         -------------
------
Insurance-related investments:
Fixed maturity securities held
   to maturity, at amortized cost          $40,492,606        $39,629,851
Fixed maturity securities available
   for sale, at market                      23,138,763         24,119,190
Equity securities available for sale,
   at market                                 5,791,835          5,745,213
Mortgage loans on real estate               17,376,360         18,926,628
Real estate, net of accumulated
   depreciation                              8,210,316          7,629,952
Policy, student and other loans             11,296,180         11,607,993
Short-term investments                         893,240          1,290,310
                                           -----------        -----------
      Total insurance-related
         investments                       107,199,300        108,949,137

Restricted assets
   of cemeteries and mortuaries              4,717,655          4,258,987
Cash                                         3,142,834         12,422,864
Receivables:
   Trade contracts                           4,984,927          4,232,030
   Mortgage loans sold to investors         29,403,122         29,071,913
   Receivable from agents                    2,393,251          2,272,624
   Receivable from officers                    113,000            118,400
   Other                                     3,938,397          3,847,079
                                           -----------       ------------
      Total receivables                     40,832,697         39,542,046
   Allowance for doubtful accounts          (1,572,169)        (1,467,954)
                                           -----------       ------------
   Net receivables                          39,260,528         38,074,092
Policyholder accounts on deposit
   with reinsurer                            7,489,264          7,806,866
Land and improvements held for sale          8,525,926          8,522,687
Accrued investment income                    1,563,997          1,493,013
Deferred policy acquisition costs           11,004,693         10,630,086
Property, plant and equipment, net          10,619,210         10,566,508
Cost of insurance acquired                   8,151,954          9,597,306
Excess of cost over net assets
   of acquired subsidiaries                  1,199,993          1,305,333
Other                                          667,835            671,558
                                          ------------       ------------
      Total assets                        $203,543,189       $214,298,437
                                          ============       ============

















See accompanying notes to consolidated financial statements.

                                        4
<PAGE>


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


                                             September 30, 2000    December 31,
                                                 (Unaudited)          1999
                                             -------------------   ------------
Liabilities:
-----------
Future life, annuity, and other
   policy benefits                               $138,811,894      $138,501,316
Unearned premium reserve                            1,299,474         1,866,523
Line of credit for financing
   of mortgage loans                                  150,000         8,687,023
Bank loans payable                                  9,325,818        10,768,098
Notes and contracts payable                         3,653,738         3,885,684
Estimated future costs of
   pre-need sales                                   6,923,290         6,817,685
Accounts payable                                      641,557           804,133
Funds held under reinsurance
   treaties                                         1,524,487         1,475,512
Other liabilities and
   accrued expenses                                 4,296,623         3,219,166
Income taxes                                        5,964,003         5,736,860
                                                 ------------      ------------
      Total liabilities                           172,590,884       181,762,000

Minority interest                                   4,577,407         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                      834,907           665,691
Retained earnings                                   8,047,750         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                         26,374,898        26,489,693
                                                  -----------      ------------
   Total liabilities and
      stockholders' equity                       $203,543,189      $214,298,437
                                                 ============      ============












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,
                                                      2000             1999
Cash flows from operating activities:           -------------------------------
      Net cash provided by
         operating activities                       $5,024,387       $1,783,920
                                                    ----------       ----------
Cash flows from investing activities:
   Securities held to maturity:
      Purchase - fixed maturity securities          (4,798,597)              --
      Calls and maturities - fixed
        maturity securities                          4,000,900        4,562,415
   Securities available for sale:
      Purchases - equity securities                   (120,812)         (43,759)
      Sales - equity securities                             --               --
      Calls and maturities - fixed
         maturity securities                         1,321,827        2,746,609
   Purchases of short-term investments              (4,988,744)      (7,896,342)
   Sales of short-term investments                   5,385,814       16,093,963
   Purchases of restricted assets                     (458,668)        (102,847)
   Mortgage, policy, and other loans made           (1,977,673)      (4,619,857)
   Payments received for mortgage,
     policy, and other loans                         3,991,477        2,246,096
   Purchases of property, plant,
      and equipment                                   (698,952)        (394,196)
   Purchases of real estate                           (845,408)        (368,051)
                                                   -----------      -----------
         Net cash provided by
            investing activities                       811,164       12,224,031

Cash flows from financing activities:
   Annuity receipts                                  6,616,212        7,848,532
   Annuity withdrawals                             (10,705,423)      (8,385,746)
   Repayment of bank loans and
      notes and contracts payable                   (1,674,226)      (5,331,755)
   Net change in line of credit
      for financing of mortgage loans               (8,537,023)      (6,372,446)
   Purchase of treasury stock                         (815,121)        (405,349)
                                                   -----------    -------------
   Net cash used in
      financing activities                         (15,115,581)     (12,646,764)
                                                  ------------    -------------
Net change in cash                                  (9,280,030)       1,361,187

Cash at beginning of period                         12,422,864        6,670,996
                                                  ------------    -------------
Cash at end of period                               $3,142,834       $8,032,183
                                                  ============    =============














See accompanying notes to consolidated financial statements.

                                        6
<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 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 nine months ended September 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 nine  months  ended  September  30, 2000 and 1999,  total  comprehensive
income  amounted to $700,326 and  $141,687,  respectively.  For the three months
ended  September  30,  2000 and 1999,  total  comprehensive  income  amounted to
$534,953 and $224,330 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,
                                               2000                    1999
Numerator:                                    -----                    ----
      Net income                              $531,110              $579,790
                                           ===========          ============
Denominator:
      Denominator for basic
        earnings per share--
        weighted-average shares              4,290,775             4,380,510
                                           -----------           -----------
      Effect of dilutive securities:
        Employee stock options                  37,887                --
        Stock appreciation rights                 --                  --
                                           -----------            ----------
      Dilutive potential
        common shares                           37,887                --
                                           -----------            ----------
      Denominator for diluted earnings
        per share-adjusted weighted-
        average shares and assumed
        conversions                          4,328,662             4,380,510
                                            ==========            ==========
      Basic earnings per share                   $0.12                 $0.13
                                                 =====                 =====
      Diluted earnings per share                 $0.12                 $0.13
                                                 =====                 =====

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, 2000
                                   (Unaudited)

3.    Capital Stock (continued)

                                            Three Months Ended September 30,
                                              2000                    1999
Numerator:
      Net income                             $224,630             $300,152
                                          ===========       ==============
Denominator:
      Denominator for basic
        earnings per share--
        weighted-average shares             4,238,724           4,335,339
                                           ----------       -------------
      Effect of dilutive securities:
        Employee stock options                 60,993              --
        Stock appreciation rights                --                --
                                            ---------       ------------
      Dilutive potential
        common shares                          60,993              --
                                            ---------       -----------
      Denominator for diluted earnings
        per share-adjusted weighted-
        average shares and assumed
        conversions                         4,299,717       4,335,339
                                           ==========      ==========
      Basic earnings per share                  $0.05           $0.07
                                                =====           =====
      Diluted earnings per share                $0.05           $0.07
                                                =====           =====

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, 2000
                                   (Unaudited)



4.  Business Segment

                                            Life            Cemetery/                                    Reconciling
                                          Insurance         Mortuary        Mortgage        Corporate        Items     Consolidated
                                          ---------       -----------      -----------     ----------    -----------   ------------
For the Nine Months Ended
   September 30, 2000
<S>                                        <C>             <C>            <C>              <C>            <C>            <C>
   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 Nine Months Ended
   September 30, 1999
   Revenues from external
      customers                             17,088,867      8,190,945      11,530,989          37,890             --     36,848,691

   Intersegment revenues                     1,592,254             --              --       2,876,251     (4,468,505)         --

   Segment profit                              707,166       (143,693)        (48,313)        596,109             --      1,111,269

   Identifiable assets                     181,051,469     34,303,219       3,243,131       2,154,010    (20,371,190)   200,380,639

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


For the Three Months Ended
   September 30, 1999
   Revenues from external
      customers                              5,352,226      2,567,912       4,213,504          26,729             --     12,160,371

   Intersegment revenues                       593,166             --              --         960,070     (1,553,236)         --

   Segment profit                              445,253       (116,203)         53,863         225,674             --        608,587

                                        9
</TABLE>
<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                               September 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

Nine Months Ended September 30, 2000 Compared to Nine Months Ended September 30,
1999

Total revenues  increased by $6,770,000,  or 18.4%,  to $43,618,000 for the nine
months ended  September  30, 2000,  from  $36,849,000  for the nine months ended
September  30,  1999.  Contributing  to this  increase in total  revenues  was a
$6,612,000  increase in  mortgage  fee income and a  $1,282,000  increase in net
investment income.

Insurance  premiums and other  considerations  decreased by $87,000,  or .9%, to
$9,921,000 for the nine months ended  September 30, 2000,  from  $10,008,000 for
the  comparable  period in 1999.  This  decrease was  primarily  the result of a
reduction in universal life policyholder income.

Net investment  income increased by $1,282,000,  or 16.7%, to $8,946,000 for the
nine months ended September 30, 2000, from $7,664,000 for the comparable  period
in 1999.  This increase was primarily  attributable  to a greater number of loan
originations  during the nine  months of 2000 due to the  expansion  of business
activities in new geographic markets.

Net mortuary and cemetery  sales  decreased by $105,000,  or 1.4%, to $7,532,000
for the nine months ended September 30, 2000, from $7,637,000 for the comparable
period in 1999.  This  decrease was  primarily  due to fewer  pre-need  cemetery
sales.

Mortgage fee income  increased by $6,612,000,  or 63.1%,  to $17,095,000 for the
nine months ended September 30, 2000, from $10,483,000 for the comparable period
in 1999.  This increase was primarily  attributable  to a greater number of loan
originations  during the nine  months of 2000 due to the  expansion  of business
activities in new geographic markets.

Total benefits and expenses were $42,850,000, or 98.2% of total revenues for the
nine months ended  September 30, 2000, as compared to  $35,737,000,  or 97.0% of
total revenues for the comparable period in 1999.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy  benefits  increased by an aggregate of $117,000,  or 1.3%, to $8,865,000
for the nine months ended September 30, 2000, from $8,748,000 for the comparable
period in 1999.  This  increase  was  primarily  the  result of an  increase  in
interest crediting for policyholder account balances.

Amortization of deferred policy acquisition costs and cost of insurance acquired
decreased  by  $212,000,  or  5.6%,  to  $3,560,000  for the nine  months  ended
September 30, 2000,  from  $3,772,000  for the comparable  period in 1999.  This
decrease was in line with actuarial assumptions.

                                       10
<PAGE>


General and  administrative  expenses  increased  by  $6,627,000,  or 33.3%,  to
$26,533,000 for the nine months ended  September 30, 2000, from  $19,906,000 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 nine months of
2000 due to the expansion of its business activities in new geographic markets.

Interest  expense  increased by $692,000,  or 87.0%,  to $1,487,000 for the nine
months ended  September  30, 2000,  from $795,000 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 goods and services sold of the mortuaries  and  cemeteries  decreased by
$112,000,  or 4.4%, to $2,404,000 for the nine months ended  September 30, 2000,
from  $2,515,000 for the comparable  period in 1999. This decrease was primarily
due to fewer pre-need cemetery sales.

Third Quarter of 2000 Compared to Third Quarter of 1999

Total revenues  increased by $2,571,000,  or 21.1%, to $14,731,000 for the three
months ended  September 30, 2000,  from  $12,160,000  for the three months ended
September  30,  1999.  Contributing  to this  increase in total  revenues  was a
$2,224,000  increase  in  mortgage  fee income and a  $735,000  increase  in net
investment income.

Insurance premiums and other considerations  decreased by $327,000,  or 9.0%, to
$3,321,000 for the three months ended  September 30, 2000,  from  $3,648,000 for
the  comparable  period in 1999.  This  decrease was  primarily  the result of a
reduction in universal life policyholder income.

Net investment  income  increased by $735,000,  or 31.7%,  to $3,052,000 for the
three months ended September 30, 2000, from $2,317,000 for the comparable period
in 1999.  This increase was primarily  attributable  to a greater number of loan
originations  during the third quarter of 2000, due to the expansion of business
activities in new geographic markets.

Net mortuary and cemetery sales decreased by $33,000, or 1.4%, to $2,346,000 for
the three months ended  September 30, 2000,  from  $2,379,000 for the comparable
period in 1999.  This  decrease was  primarily  due to fewer  pre-need  cemetery
sales.

Mortgage fee income  increased by  $2,224,000,  or 59.1%,  to $5,987,000 for the
three months ended September 30, 2000, from $3,763,000 for the comparable period
in 1999.  This increase was primarily  attributable  to a greater number of loan
originations  during the third  quarter of 2000 due to the expansion of business
activities in new geographic markets.

Total benefits and expenses were $14,410,000, or 97.8% of total revenues for the
three months ended  September 30 2000, as compared to  $11,552,000,  or 95.0% of
total revenues for the comparable period in 1999.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy benefits  increased by an aggregate of $423,000,  or 17.7%, to $2,808,000
for  the  three  months  ended  September  30,  2000,  from  $2,385,000  for the
comparable period in 1999. This increase was primarily the result of an increase
in interest crediting for policyholder account balances.

Amortization of deferred policy acquisition costs and cost of insurance acquired
decreased by $4,000, or .3%, to $1,242,000, for the three months ended September
30, 2000, from  $1,246,000 for the comparable  period in 1999. This decrease was
in line with actuarial assumptions.

General  and  administrative  expenses  increased  by  $2,198,000  or 32.2%,  to
$9,023,000 for the three months ended  September 30, 2000,  from  $6,825,000 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 third quarter
of  2000  as a  result  of the  expansion  of  its  business  activities  in new
geographic markets.

                                       11
<PAGE>


Interest  expense  increased  by $288,000,  or 94.5%,  to $593,000 for the three
months ended  September  30, 2000,  from $305,000 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 goods and services sold of the mortuaries  and  cemeteries  decreased by
$48,000,  or 6.0%,  to $743,000 for the three months ended  September  30, 2000,
from $791,000 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  $63,631,000  as of  September  30,  2000,
compared to $63,749,000 as of December 31, 1999. This represents 59.4% and 58.5%
of the  total  insurance-related  investments  as of  September  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 September 30, 2000,  1.6% ($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 September 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  $39,355,000  as of  September  30,  2000,  as  compared  to
$41,144,000  as of  December  31,  1999.  Stockholders'  equity as a percent  of
capitalization  increased  to 67.0% as of September  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 September 30, 2000, $20,819,000 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."

               A  settlement  was  entered  into  between  HUD and the  Company.
               Included in the settlement is an  indemnification of HUD relative
               to 18 identified  loans including the providing of an irrevocable
               letter of credit in the amount of $30,000 as additional  security
               for the indemnification,  and payment of $75,000 as a civil money
               penalty.

               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. This matter has been settled.

               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. (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.


    27.  Financial Data Schedule

    (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 14, 2000                  By: George R. Quist,
       -----------------                      ------------------------------
                                              Chairman of the Board,
                                              President and Chief Executive
                                              Officer (Principal Executive
                                              Officer)


DATED: November 14, 2000                 By:  Scott M. Quist
       -----------------                      ------------------------------
                                              First Vice President, General
                                              Counsel, Treasurer and Director
                                              (Principal Financial and
                                              Accounting Officer)

                                       16
<PAGE>