----

----

| UTAH                                                                           | 87-0345941                           |
|--------------------------------------------------------------------------------|--------------------------------------|
| (State or other jurisdiction of incorporation or organization)                 | (I.R.S. Employer Identification No.) |
|                                                                           |                                 |
| 5300 South 360 West, Suite 250 Salt Lake City, Utah                            | 84123                                |
| (Address of principal executive office)                                        | (Zip Code)                           |
|                                                                           |                                 |
|  (801) 264-1060(Registrant’s telephone number, including area code) |

|                                 |   | 9,639,121                          |
|--------------------------------------|--------|------------------------------------|
| Title of Class                       |   | Number of Shares Outstanding as of |
|                                 |   | August 14, 2012                    |
|                                 |   |                               |
| Class C Common Stock, $.20 par value |   | 10,132,749                         |
| Title of Class                       |   | Number of Shares Outstanding as of |
|                                 |   | August 14, 2012                    |
|                                 |   |                               |

----

|    |                                                                                                                            | Page No. |
|---------|---------------------------------------------------------------------------------------------------------------------------------|----------|
|    | PART I - FINANCIAL INFORMATION                                                                                                  |     |
|    |                                                                                                                            |     |
| Item 1. | Financial Statements                                                                                                            |     |
|    |                                                                                                                            |     |
|    | Condensed Consolidated Balance Sheets as of June 30, 2012 and December 31, 2011 (unaudited)                                     | 3-4      |
|    |                                                                                                                            |     |
|    | Condensed Consolidated Statements of Earnings for the Three and Six Months Ended June 30, 2012 and 2011 (unaudited)             | 5        |
|    |                                                                                                                            |     |
|    | Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended June 30, 2012 and 2011 (unaudited) | 6        |
|    |                                                                                                                            |     |
|    | Condensed Consolidated Statements of Stockholders' Equity as of June 30, 2012 and June 30, 2011 (unaudited)                     | 7        |
|    |                                                                                                                            |     |
|    | Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2012 and 2011 (unaudited)                     | 8        |
|    |                                                                                                                            |     |
|    | Notes to Condensed Consolidated Financial Statements (unaudited)                                                                | 9        |
|    |                                                                                                                            |     |
| Item 2. | Management’s Discussion and Analysis of Financial Condition and Results of Operations                                     | 40       |
|    |                                                                                                                            |     |
| Item 3. | Quantitative and Qualitative Disclosures about Market Risk                                                                      | 50       |
|    |                                                                                                                            |     |
| Item 4. | Controls and Procedures                                                                                                         | 50       |
|    |                                                                                                                            |     |
|    | PART II ‐ OTHER INFORMATION                                                                                               |     |
|    |                                                                                                                            |     |
|    | Other Information                                                                                                               | 52       |
|    |                                                                                                                            |     |
|    | Signature Page                                                                                                                  | 54       |
|    |                                                                                                                            |     |
|    | Certifications                                                                                                                  | 55       |

----

| Assets                                                                                                                                                |   | June 30,2012 |        |   | December 31,2011 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|------------------|--------|
| Investments:                                                                                                                                          |   |         |        |   |             |   |
| Fixed maturity securities, held to maturity, at amortized cost                                                                                        |   | $            | 131,592,564 |   |             | $      | 127,579,087 |   |
| Equity securities, available for sale, at estimated fair value                                                                                        |   |         | 5,882,433   |   |             |   | 6,299,392 |   |
| Mortgage loans on real estate and construction loans, held for investment net of allowances for losses of $4,699,410 and $4,881,173 for 2012 and 2011 |   |         | 97,975,694  |   |             |   | 115,155,967 |   |
| Real estate held for investment, net of accumulated depreciation of $4,352,818 and $4,189,641 for 2012 and 2011                                       |   |         | 4,272,796   |   |             |   | 3,786,780 |   |
| Other real estate owned held for investment, net of accumulated depreciation of $2,420,635 and $1,810,238 for 2012 and 2011                           |   |         | 56,127,842  |   |             |   | 46,398,095 |   |
| Other real estate owned held for sale                                                                                                                 |   |         | 5,998,740   |   |             |   | 5,793,900 |   |
| Policy and other loans, net of allowances for doubtful accounts of $461,775 and $427,136 for 2012 and 2011                                            |   |         | 17,818,019  |   |             |   | 18,463,277 |   |
| Short-term investments                                                                                                                                |   |         | 5,562,045   |   |             |   | 6,932,023 |   |
| Accrued investment income                                                                                                                             |   |         | 2,282,826   |   |             |   | 2,323,080 |   |
| Total investments                                                                                                                                     |   |         | 327,512,959 |   |             |   | 332,731,601 |   |
| Cash and cash equivalents                                                                                                                             |   |         | 45,476,876  |   |             |   | 17,083,604 |   |
| Mortgage loans sold to investors                                                                                                                      |   |         | 72,674,336  |   |             |   | 77,339,445 |   |
| Receivables, net                                                                                                                                      |   |         | 12,431,419  |   |             |   | 9,934,075 |   |
| Restricted assets of cemeteries and mortuaries                                                                                                        |   |         | 3,697,483   |   |             |   | 3,392,497 |   |
| Cemetery perpetual care trust investments                                                                                                             |   |         | 1,965,244   |   |             |   | 1,810,185 |   |
| Receivable from reinsurers                                                                                                                            |   |         | 14,351,927  |   |             |   | 7,484,466 |   |
| Cemetery land and improvements                                                                                                                        |   |         | 11,096,723  |   |             |   | 11,105,809 |   |
| Deferred policy and pre-need contract acquisition costs                                                                                               |   |         | 37,025,433  |   |             |   | 36,237,069 |   |
| Property and equipment, net                                                                                                                           |   |         | 9,830,193   |   |             |   | 9,300,185 |   |
| Value of business acquired                                                                                                                            |   |         | 10,524,072  |   |             |   | 11,020,834 |   |
| Goodwill                                                                                                                                              |   |         | 677,039     |   |             |   | 677,039 |   |
| Other                                                                                                                                                 |   |         | 6,346,834   |   |             |   | 3,022,113 |   |
|                                                                                                                                                  |   |         |        |   |             |   |   |   |
| Total Assets                                                                                                                                          |   | $            | 553,610,538 |   |             | $      | 521,138,922 |   |

----

|                                                                                                                                       |   | June 30,2012 |        |   | December 31,2011 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------|--------|------------------|--------|
| Liabilities and Stockholders' Equity                                                                                                       |   |         |        |   |             |   |
| Liabilities                                                                                                                                |   |         |        |   |             |   |
| Future life, annuity, and other benefits                                                                                                   |   | $            | 396,253,821 |   |             | $      | 381,595,568 |   |
| Unearned premium reserve                                                                                                                   |   |         | 4,942,074   |   |             |   | 5,030,443 |   |
| Bank and other loans payable                                                                                                               |   |         | 27,836,728  |   |             |   | 25,019,119 |   |
| Deferred pre-need cemetery and mortuary contract revenues                                                                                  |   |         | 13,280,079  |   |             |   | 13,140,483 |   |
| Cemetery perpetual care obligation                                                                                                         |   |         | 3,065,606   |   |             |   | 2,983,077 |   |
| Accounts payable                                                                                                                           |   |         | 2,717,565   |   |             |   | 2,672,479 |   |
| Other liabilities and accrued expenses                                                                                                     |   |         | 19,086,401  |   |             |   | 14,456,887 |   |
| Income taxes                                                                                                                               |   |         | 17,749,085  |   |             |   | 15,010,279 |   |
| Total liabilities                                                                                                                          |   |         | 484,931,359 |   |             |   | 459,908,335 |   |
|                                                                                                                                       |   |         |        |   |             |   |   |   |
| Stockholders' Equity                                                                                                                       |   |         |        |   |             |   |   |   |
| Common Stock:                                                                                                                              |   |         |        |   |             |   |   |   |
| Class A: common stock - $2.00 par value; 20,000,000 shares authorized; issued 9,638,798 shares in 2012 and 9,638,798 shares in 2011        |   |         | 19,277,596  |   |             |   | 19,277,596 |   |
| Class B: non-voting common stock - $1.00 par value; 5,000,000 shares authorized; none issued or outstanding                                |   |         | -           |   |             |   | - |   |
| Class C: convertible common stock - $0.20 par value; 15,000,000 shares authorized; issued 10,135,976 shares in 2012 and 10,135,976 in 2011 |   |         | 2,027,195   |   |             |   | 2,027,195 |   |
| Additional paid-in capital                                                                                                                 |   |         | 19,483,976  |   |             |   | 19,487,565 |   |
| Accumulated other comprehensive income, net of taxes                                                                                       |   |         | 2,594,453   |   |             |   | 654,443 |   |
| Retained earnings                                                                                                                          |   |         | 27,801,838  |   |             |   | 22,546,623 |   |
| Treasury stock at cost - 1,094,204 Class A shares in 2012 and 1,198,167 Class A shares in 2011                                             |   |         | (2,505,879  | )      |             |   | (2,762,835 | ) |
|                                                                                                                                       |   |         |        |   |             |   |   |   |
| Total stockholders' equity                                                                                                                 |   |         | 68,679,179  |   |             |   | 61,230,587 |   |
|                                                                                                                                       |   |         |        |   |             |   |   |   |
| Total Liabilities and Stockholders' Equity                                                                                                 |   | $            | 553,610,538 |   |             | $      | 521,138,922 |   |

----

|                                                                                          |   | Three Months Ended June 30, |       |   | Six Months Ended June 30, |   |
|-----------------------------------------------------------------------------------------------|--------|-----------------------------|------------|--------|---------------------------|--------|
|                                                                                          |   | 2012                        |       |   | 2011                      |   |   | 2012 |   |   | 2011 |   |
| Revenues:                                                                                     |   |                        |       |   |                      |   |   |   |   |   |   |   |
| Insurance premiums and other considerations                                                   |   | $                           | 12,281,896 |   |                      | $      | 11,893,298 |   |   | $ | 24,869,684 |   |   | $ | 24,585,601 |   |
| Net investment income                                                                         |   |                        | 6,137,898  |   |                      |   | 4,717,358 |   |   |   | 12,191,945 |   |   |   | 8,987,806 |   |
| Net mortuary and cemetery sales                                                               |   |                        | 2,626,690  |   |                      |   | 2,762,610 |   |   |   | 5,501,639 |   |   |   | 5,704,603 |   |
| Realized gains on investments and other assets                                                |   |                        | 186,926    |   |                      |   | 1,257,566 |   |   |   | 357,986 |   |   |   | 1,602,656 |   |
| Other than temporary impairments on investments                                               |   |                        | (45,000    | )      |                      |   | (30,000 | ) |   |   | (90,000 | ) |   |   | (65,129 | ) |
| Mortgage fee income                                                                           |   |                        | 35,087,056 |   |                      |   | 15,645,290 |   |   |   | 60,577,640 |   |   |   | 29,097,881 |   |
| Other                                                                                         |   |                        | 252,744    |   |                      |   | 220,296 |   |   |   | 442,539 |   |   |   | 725,180 |   |
| Total revenues                                                                                |   |                        | 56,528,210 |   |                      |   | 36,466,418 |   |   |   | 103,851,433 |   |   |   | 70,638,598 |   |
|                                                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Benefits and expenses:                                                                        |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Death benefits                                                                                |   |                        | 4,923,798  |   |                      |   | 5,135,908 |   |   |   | 10,110,097 |   |   |   | 11,284,571 |   |
| Surrenders and other policy benefits                                                          |   |                        | 277,925    |   |                      |   | 307,089 |   |   |   | 1,112,990 |   |   |   | 1,015,123 |   |
| Increase in future policy benefits                                                            |   |                        | 5,294,936  |   |                      |   | 5,407,593 |   |   |   | 10,936,560 |   |   |   | 9,538,690 |   |
| Amortization of deferred policy and pre-need acquisition costs and value of business acquired |   |                        | 1,949,308  |   |                      |   | 1,955,321 |   |   |   | 3,873,735 |   |   |   | 3,955,538 |   |
| Selling, general and administrative expenses:                                                 |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Commissions                                                                                   |   |                        | 20,394,230 |   |                      |   | 9,288,848 |   |   |   | 35,280,020 |   |   |   | 17,149,481 |   |
| Salaries                                                                                      |   |                        | 6,807,364  |   |                      |   | 5,717,905 |   |   |   | 13,320,207 |   |   |   | 11,902,692 |   |
| Provision for loan losses and loss reserve                                                    |   |                        | 1,097,873  |   |                      |   | 415,541 |   |   |   | 1,500,347 |   |   |   | 1,107,335 |   |
| Costs related to funding mortgage loans                                                       |   |                        | 1,800,348  |   |                      |   | 1,001,329 |   |   |   | 3,160,652 |   |   |   | 1,845,834 |   |
| Other                                                                                         |   |                        | 7,706,098  |   |                      |   | 6,222,289 |   |   |   | 14,704,988 |   |   |   | 12,300,160 |   |
| Interest expense                                                                              |   |                        | 847,141    |   |                      |   | 378,100 |   |   |   | 1,615,885 |   |   |   | 693,642 |   |
| Cost of goods and services sold-mortuaries and cemeteries                                     |   |                        | 392,812    |   |                      |   | 495,317 |   |   |   | 870,983 |   |   |   | 1,026,936 |   |
| Total benefits and expenses                                                                   |   |                        | 51,491,833 |   |                      |   | 36,325,240 |   |   |   | 96,486,464 |   |   |   | 71,820,002 |   |
|                                                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) before income taxes                                                           |   |                        | 5,036,377  |   |                      |   | 141,178 |   |   |   | 7,364,969 |   |   |   | (1,181,404 | ) |
| Income tax (provision) benefit                                                                |   |                        | (1,443,345 | )      |                      |   | 63,689 |   |   |   | (2,109,754 | ) |   |   | 867,798 |   |
|                                                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss)                                                                           |   | $                           | 3,593,032  |   |                      | $      | 204,867 |   |   | $ | 5,255,215 |   |   | $ | (313,606 | ) |
|                                                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) per Class A Equivalent common share (1)                                   |   | $                           | 0.38       |   |                      | $      | 0.02 |   |   | $ | 0.55 |   |   | $ | (0.03 | ) |
|                                                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Net earnings (loss) per Class A Equivalent common share-assuming dilution (1)                 |   | $                           | 0.36       |   |                      | $      | 0.02 |   |   | $ | 0.54 |   |   | $ | (0.03 | ) |
|                                                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average Class A equivalent common share outstanding (1)                              |   |                        | 9,540,238  |   |                      |   | 9,350,042 |   |   |   | 9,518,058 |   |   |   | 9,311,131 |   |
|                                                                                          |   |                        |       |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average Class A equivalent common shares outstanding-assuming dilution (1)           |   |                        | 9,901,764  |   |                      |   | 9,392,736 |   |   |   | 9,684,868 |   |   |   | 9,311,131 |   |

----

|                                                                       |   | Three Months Ended June 30, |      |   | Six Months Ended June 30, |   |
|----------------------------------------------------------------------------|--------|-----------------------------|-----------|--------|---------------------------|--------|
|                                                                       |   | 2012                        |      |   | 2011                      |   |   | 2012 |   |   | 2011 |   |
| Net earnings (loss)                                                        |   | $                           | 3,593,032 |   |                      | $      | 204,867 |   |   | $ | 5,255,215 |   |   | $ | (313,606 | ) |
| Other comprehensive income:                                                |   |                        |      |   |                      |   |   |   |   |   |   |   |   |   |   |   |
|   Net unrealized gains on derivative instruments                 |   |                        | 1,273,757 |   |                      |   | 403,906 |   |   |   | 1,923,850 |   |   |   | 451,090 |   |
|   Net unrealized gains (losses) on available for sale securities |   |                        | (313,677  | )      |                      |   | (344,686 | ) |   |   | 16,160 |   |   |   | (358,655 | ) |
| Other comprehensive income:                                                |   |                        | 960,080   |   |                      |   | 59,220 |   |   |   | 1,940,010 |   |   |   | 92,435 |   |
| Comprehensive income (loss)                                                |   | $                           | 4,553,112 |   |                      | $      | 264,087 |   |   | $ | 7,195,225 |   |   | $ | (221,171 | ) |

----

|                          |   | Class A Common Stock |       |   | Class C Common Stock |   |      | Additional Paid-in Capital |   |   | Accumulated Other Comprehensive Income (Loss) |   |   | Retained Earnings |      |   | Treasury Stock |   |       | Total  |   |
|-------------------------------|--------|----------------------|------------|--------|----------------------|--------|-----------|----------------------------|--------|--------|-----------------------------------------------|--------|--------|-------------------|-----------|--------|----------------|--------|------------|--------|--------|
| Balance at December 31, 2010  |   | $                    | 18,357,890 |   |                 | $      | 1,932,031 |                       |   | $      | 19,689,993                                    |   |   | $                 | 1,188,246 |   |           | $      | 21,907,579 |   |   | $ | (3,147,271 | ) |   | $ | 59,928,468 |   |
|                          |   |                 |       |   |                 |   |      |                       |   |   |                                          |   |   |              |      |   |           |   |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income:         |   |                 |       |   |                 |   |      |                       |   |   |                                          |   |   |              |      |   |           |   |       |   |   |   |   |   |   |   |   |   |
| Net loss                      |   |                 | -          |   |                 |   | -         |                       |   |   | -                                             |   |   |              | -         |   |           |   | (313,606   | )      |   |   | - |   |   |   | (313,606 | ) |
| Other comprehensive income    |   |                 | -          |   |                 |   | -         |                       |   |   | -                                             |   |   |              | 92,435    |   |           |   | -          |   |   |   | - |   |   |   | 92,435 |   |
| Grant of stock options        |   |                 | -          |   |                 |   | -         |                       |   |   | 128,688                                       |   |   |              | -         |   |           |   | -          |   |   |   | - |   |   |   | 128,688 |   |
| Sale of treasury stock        |   |                 | -          |   |                 |   | -         |                       |   |   | (7,108                                        | )      |   |              | -         |   |           |   | -          |   |   |   | 147,343 |   |   |   | 140,235 |   |
| Stock dividends               |   |                 | 218        |   |                 |   | 2         |                       |   |   | (29                                           | )      |   |              | -         |   |           |   | (191       | )      |   |   | - |   |   |   | - |   |
| Conversion Class C to Class A |   |                 | 958        |   |                 |   | (959      | )                          |   |   | 1                                             |   |   |              | -         |   |           |   | -          |   |   |   | - |   |   |   | - |   |
| Balance at June 30, 2011      |   | $                    | 18,359,066 |   |                 | $      | 1,931,074 |                       |   | $      | 19,811,545                                    |   |   | $                 | 1,280,681 |   |           | $      | 21,593,782 |   |   | $ | (2,999,928 | ) |   | $ | 59,976,220 |   |
|                          |   |                 |       |   |                 |   |      |                       |   |   |                                          |   |   |              |      |   |           |   |       |   |   |   |   |   |   |   |   |   |
|                          |   |                 |       |   |                 |   |      |                       |   |   |                                          |   |   |              |      |   |           |   |       |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2011  |   | $                    | 19,277,596 |   |                 | $      | 2,027,195 |                       |   | $      | 19,487,565                                    |   |   | $                 | 654,443   |   |           | $      | 22,546,623 |   |   | $ | (2,762,835 | ) |   | $ | 61,230,587 |   |
|                          |   |                 |       |   |                 |   |      |                       |   |   |                                          |   |   |              |      |   |           |   |       |   |   |   |   |   |   |   |   |   |
| Comprehensive income:         |   |                 |       |   |                 |   |      |                       |   |   |                                          |   |   |              |      |   |           |   |       |   |   |   |   |   |   |   |   |   |
| Net earnings                  |   |                 | -          |   |                 |   | -         |                       |   |   | -                                             |   |   |              | -         |   |           |   | 5,255,215  |   |   |   | - |   |   |   | 5,255,215 |   |
| Other comprehensive income    |   |                 | -          |   |                 |   | -         |                       |   |   | -                                             |   |   |              | 1,940,010 |   |           |   | -          |   |   |   | - |   |   |   | 1,940,010 |   |
| Grant of stock options        |   |                 | -          |   |                 |   | -         |                       |   |   | 94,436                                        |   |   |              | -         |   |           |   | -          |   |   |   | - |   |   |   | 94,436 |   |
| Sale of treasury stock        |   |                 | -          |   |                 |   | -         |                       |   |   | (98,025                                       | )      |   |              | -         |   |           |   | -          |   |   |   | 256,956 |   |   |   | 158,931 |   |
| Balance at June 30, 2012      |   | $                    | 19,277,596 |   |                 | $      | 2,027,195 |                       |   | $      | 19,483,976                                    |   |   | $                 | 2,594,453 |   |           | $      | 27,801,838 |   |   | $ | (2,505,879 | ) |   | $ | 68,679,179 |   |

----

|                                                                                             |   | Six Months Ended June 30, |        |
|--------------------------------------------------------------------------------------------------|--------|---------------------------|-------------|
|                                                                                             |   | 2012                      |        |   | 2011 |   |
| Cash flows from operating activities:                                                            |   |                      |        |   |   |   |
|      Net cash provided by operating activities                          |   | $                         | 24,431,101  |   |   | $ | 34,177,623 |   |
|                                                                                             |   |                      |        |   |   |   |   |   |
| Cash flows from investing activities:                                                            |   |                      |        |   |   |   |   |   |
| Securities held to maturity:                                                                     |   |                      |        |   |   |   |   |   |
|         Purchase-fixed maturity securities               |   |                      | (7,752,826  | ) |   |   | (46,298,806 | ) |
|         Calls and maturities - fixed maturity securities |   |                      | 3,705,012   |   |   |   | 8,366,456 |   |
| Securities available for sale:                                                                   |   |                      |        |   |   |   |   |   |
|        Purchase - equity securities                           |   |                      | (887,917    | ) |   |   | (3,477,093 | ) |
|        Sales - equity securities                              |   |                      | 1,445,020   |   |   |   | 3,457,030 |   |
| Purchase of short-term investments                                                               |   |                      | (6,579,805  | ) |   |   | (32,008,356 | ) |
| Sales of short-term investments                                                                  |   |                      | 7,949,783   |   |   |   | 30,358,108 |   |
| Purchase of restricted assets                                                                    |   |                      | (285,626    | ) |   |   | (150,163 | ) |
| Changes in assets for perpetual care trusts                                                      |   |                      | (139,322    | ) |   |   | (138,661 | ) |
| Amount received for perpetual care trusts                                                        |   |                      | 82,529      |   |   |   | 55,590 |   |
| Mortgage, policy, and other loans made                                                           |   |                      | (55,936,935 | ) |   |   | (64,347,843 | ) |
| Payments received for mortgage, policy and other loans                                           |   |                      | 62,940,253  |   |   |   | 52,272,804 |   |
| Purchase of property and equipment                                                               |   |                      | (1,191,210  | ) |   |   | (298,209 | ) |
| Disposal of property and equipment                                                               |   |                      | 14,768      |   |   |   | 2,250,000 |   |
| Purchase of real estate                                                                          |   |                      | (55,682     | ) |   |   | (218,836 | ) |
| Sale of real estate                                                                              |   |                      | 366,720     |   |   |   | 2,032,992 |   |
| Reinsurance with North America Life                                                              |   |                      | -           |   |   |   | 12,990,444 |   |
| Cash paid for purchase of subsidiaries, net of cash received                                     |   |                      | (180,591    | ) |   |   | - |   |
|       Net cash provided by (used in) investing activities          |   |                      | 3,494,171   |   |   |   | (35,154,543 | ) |
|                                                                                             |   |                      |        |   |   |   |   |   |
| Cash flows from financing activities:                                                            |   |                      |        |   |   |   |   |   |
| Annuity contract receipts                                                                        |   |                      | 4,388,970   |   |   |   | 4,074,901 |   |
| Annuity contract withdrawals                                                                     |   |                      | (6,748,612  | ) |   |   | (7,246,850 | ) |
| Repayment of bank loans on notes and contracts                                                   |   |                      | (772,358    | ) |   |   | (1,186,821 | ) |
| Proceeds from borrowing on bank loans                                                            |   |                      | -           |   |   |   | 3,559,026 |   |
| Change in line of credit borrowings                                                              |   |                      | 3,600,000   |   |   |   | - |   |
|       Net cash provided by (used in) financing activities          |   |                      | 468,000     |   |   |   | (799,744 | ) |
|                                                                                             |   |                      |        |   |   |   |   |   |
| Net change in cash and cash equivalents                                                          |   |                      | 28,393,272  |   |   |   | (1,776,664 | ) |
|                                                                                             |   |                      |        |   |   |   |   |   |
| Cash and cash equivalents at beginning of period                                                 |   |                      | 17,083,604  |   |   |   | 39,556,503 |   |
|                                                                                             |   |                      |        |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                       |   | $                         | 45,476,876  |   |   | $ | 37,779,839 |   |
|                                                                                             |   |                      |        |   |   |   |   |   |
| Non Cash Investing and Financing Activities                                                      |   |                      |        |   |   |   |   |   |
| Mortgage loans foreclosed into real estate                                                       |   | $                         | 11,527,488  |   |   | $ | 4,916,403 |   |

----

----

|                                                                  |   | AmortizedCost |        |   | GrossUnrealizedGains |   |       | Gross Unrealized Losses |   |   | EstimatedFairValue |   |
|-----------------------------------------------------------------------|--------|---------------|-------------|--------|----------------------|--------|------------|------------------------------|--------|--------|--------------------|--------|
| June 30, 2012:                                                        |   |          |        |   |                 |   |       |                         |   |   |               |   |
| Fixed maturity securities held to maturity carried at amortized cost: |   |          |        |   |                 |   |       |                         |   |   |               |   |
| Bonds:                                                                |   |          |        |   |                 |   |       |                         |   |   |               |   |
| U.S. Treasury securities and obligations of U.S. Government agencies  |   | $             | 2,811,474   |   |                 | $      | 558,830    |                         |   | $      | -                  |   |   | $ | 3,370,304 |   |
| Obligations of states and political subdivisions                      |   |          | 2,960,476   |   |                 |   | 353,439    |                         |   |   | (6,560             | )      |   |   | 3,307,355 |   |
| Corporate securities including public utilities                       |   |          | 118,961,564 |   |                 |   | 12,950,236 |                         |   |   | (1,409,269         | )      |   |   | 130,502,531 |   |
| Mortgage-backed securities                                            |   |          | 5,348,172   |   |                 |   | 288,026    |                         |   |   | (193,980           | )      |   |   | 5,442,218 |   |
| Redeemable preferred stock                                            |   |          | 1,510,878   |   |                 |   | 75,472     |                         |   |   | (8,000             | )      |   |   | 1,578,350 |   |
| Total fixed maturity securities held to maturity                      |   | $             | 131,592,564 |   |                 | $      | 14,226,003 |                         |   | $      | (1,617,809         | )      |   | $ | 144,200,758 |   |

----

|                                                                                        |   | AmortizedCost |       |   | GrossUnrealizedGains |   |    | GrossUnrealizedLosses |   |   | EstimatedFairValue |   |
|---------------------------------------------------------------------------------------------|--------|---------------|------------|--------|----------------------|--------|---------|-----------------------|--------|--------|--------------------|--------|
| June 30, 2012:                                                                              |   |          |       |   |                 |   |    |                  |   |   |               |   |
|                                                                                        |   |          |       |   |                 |   |    |                  |   |   |               |   |
| Equity securities available for sale at estimated fair value:                               |   |          |       |   |                 |   |    |                  |   |   |               |   |
|                                                                                        |   |          |       |   |                 |   |    |                  |   |   |               |   |
| Non-redeemable preferred stock                                                              |   | $             | 20,281     |   |                 | $      | -       |                  |   | $      | (1,797             | )      |   | $ | 18,484 |   |
|                                                                                        |   |          |       |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Common stock:                                                                               |   |          |       |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
|                                                                                        |   |          |       |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Industrial, miscellaneous and all other                                                     |   |          | 6,840,761  |   |                 |   | 378,015 |                  |   |   | (1,354,827         | )      |   |   | 5,863,949 |   |
|                                                                                        |   |          |       |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Total equity securities available for sale at estimated fair value                          |   | $             | 6,861,042  |   |                 | $      | 378,015 |                  |   | $      | (1,356,624         | )      |   | $ | 5,882,433 |   |
|                                                                                        |   |          |       |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Mortgage loans on real estate and construction loans held for investment at amortized cost: |   |          |       |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Residential                                                                                 |   | $             | 52,498,871 |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Residential construction                                                                    |   |          | 9,085,386  |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Commercial                                                                                  |   |          | 41,090,847 |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Less: Allowance for loan losses                                                             |   |          | (4,699,410 | )      |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Total mortgage loans on real estate and construction loans held for investment              |   | $             | 97,975,694 |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
|                                                                                        |   |          |       |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Real estate held for investment - net of depreciation                                       |   | $             | 4,272,796  |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Other real estate owned held for investment - net of  depreciation                |   |          | 56,127,842 |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Other real estate owned held for sale                                                       |   |          | 5,998,740  |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Total real estate                                                                           |   | $             | 66,399,378 |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
|                                                                                        |   |          |       |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Policy and other loans at amortized cost - net of allowance for doubtful accounts           |   | $             | 17,818,019 |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
|                                                                                        |   |          |       |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Short-term investments at amortized cost                                                    |   | $             | 5,562,045  |   |                 |   |    |                  |   |   |               |   |   |   |   |   |

----

|                                                                  |   | AmortizedCost |        |   | GrossUnrealizedGains |   |       | Gross Unrealized Losses |   |   | EstimatedFairValue |   |
|-----------------------------------------------------------------------|--------|---------------|-------------|--------|----------------------|--------|------------|------------------------------|--------|--------|--------------------|--------|
| December 31, 2011:                                                    |   |          |        |   |                 |   |       |                         |   |   |               |   |
|                                                                  |   |          |        |   |                 |   |       |                         |   |   |               |   |
| Fixed maturity securities held to maturity carried at amortized cost: |   |          |        |   |                 |   |       |                         |   |   |               |   |
| Bonds:                                                                |   |          |        |   |                 |   |       |                         |   |   |               |   |
| U.S. Treasury securities and obligations of U.S. Government agencies  |   | $             | 2,820,159   |   |                 | $      | 551,740    |                         |   | $      | -                  |   |   | $ | 3,371,899 |   |
| Obligations of states and political subdivisions                      |   |          | 3,024,425   |   |                 |   | 309,986    |                         |   |   | (13,156            | )      |   |   | 3,321,255 |   |
| Corporate securities including public utilities                       |   |          | 113,648,447 |   |                 |   | 10,075,071 |                         |   |   | (2,268,146         | )      |   |   | 121,455,372 |   |
| Mortgage-backed securities                                            |   |          | 6,575,178   |   |                 |   | 354,286    |                         |   |   | (356,900           | )      |   |   | 6,572,564 |   |
| Redeemable preferred stock                                            |   |          | 1,510,878   |   |                 |   | 72,639     |                         |   |   | (129,200           | )      |   |   | 1,454,317 |   |
| Total fixed maturity securities held to maturity                      |   | $             | 127,579,087 |   |                 | $      | 11,363,722 |                         |   | $      | (2,767,402         | )      |   | $ | 136,175,407 |   |

----

|                                                                                        |   | AmortizedCost |        |   | GrossUnrealizedGains |   |    | GrossUnrealizedLosses |   |   | EstimatedFairValue |   |
|---------------------------------------------------------------------------------------------|--------|---------------|-------------|--------|----------------------|--------|---------|-----------------------|--------|--------|--------------------|--------|
| December 31, 2011:                                                                          |   |          |        |   |                 |   |    |                  |   |   |               |   |
|                                                                                        |   |          |        |   |                 |   |    |                  |   |   |               |   |
| Equity securities available for sale at estimated fair value:                               |   |          |        |   |                 |   |    |                  |   |   |               |   |
|                                                                                        |   |          |        |   |                 |   |    |                  |   |   |               |   |
| Non-redeemable preferred stock                                                              |   | $             | 20,281      |   |                 | $      | -       |                  |   | $      | (1,843             | )      |   | $ | 18,438 |   |
|                                                                                        |   |          |        |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Common stock:                                                                               |   |          |        |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
|                                                                                        |   |          |        |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Industrial, miscellaneous and all other                                                     |   |          | 7,250,991   |   |                 |   | 363,387 |                  |   |   | (1,333,424         | )      |   |   | 6,280,954 |   |
|                                                                                        |   |          |        |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Total equity securities available for sale at estimated fair value                          |   | $             | 7,271,272   |   |                 | $      | 363,387 |                  |   | $      | (1,335,267         | )      |   | $ | 6,299,392 |   |
|                                                                                        |   |          |        |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Mortgage loans on real estate and construction loans held for investment at amortized cost: |   |          |        |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Residential                                                                                 |   | $             | 54,344,327  |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Residential construction                                                                    |   |          | 17,259,666  |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Commercial                                                                                  |   |          | 48,433,147  |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Less: Allowance for loan losses                                                             |   |          | (4,881,173  | )      |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Total mortgage loans on real estate and construction loans held for investment              |   | $             | 115,155,967 |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
|                                                                                        |   |          |        |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Real estate held for investment - net of depreciation                                       |   | $             | 3,786,780   |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Other real estate owned held for investment - net of depreciation                           |   |          | 46,398,095  |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Other real estate owned held for sale                                                       |   |          | 5,793,900   |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Total real estate                                                                           |   | $             | 55,978,775  |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
|                                                                                        |   |          |        |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Policy and other loans at amortized cost - net of allowance for doubtful accounts           |   | $             | 18,463,277  |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
|                                                                                        |   |          |        |   |                 |   |    |                  |   |   |               |   |   |   |   |   |
| Short-term investments at amortized cost                                                    |   | $             | 6,932,023   |   |                 |   |    |                  |   |   |               |   |   |   |   |   |

----

|                                             |   | Unrealized Losses for Less than Twelve Months |       |   | No. of Investment Positions |   |   | Unrealized Losses for More than Twelve Months |   |   | No. of Investment Positions |   |   | Total Unrealized Loss |   |
|--------------------------------------------------|--------|-----------------------------------------------|------------|--------|-----------------------------|--------|--------|-----------------------------------------------|--------|--------|-----------------------------|--------|--------|-----------------------|--------|
| At June 30, 2012                                 |   |                                          |       |   |                        |   |   |                                          |   |   |                        |   |   |                  |   |
| Obligations of states and political subdivisions |   | $                                             | -          |   |                        |   | 0      |                                          |   | $      | 6,560                       |   |   |                  | 2      |   |   | $ | 6,560 |   |
| Corporate securities including public utilities  |   |                                          | 598,070    |   |                        |   | 22     |                                          |   |   | 811,199                     |   |   |                  | 17     |   |   |   | 1,409,269 |   |
| Mortgage-backed securities                       |   |                                          | 54,149     |   |                        |   | 1      |                                          |   |   | 139,831                     |   |   |                  | 3      |   |   |   | 193,980 |   |
| Redeemable preferred stock                       |   |                                          | -          |   |                        |   | 0      |                                          |   |   | 8,000                       |   |   |                  | 1      |   |   |   | 8,000 |   |
| Total unrealized losses                          |   | $                                             | 652,219    |   |                        |   | 23     |                                          |   | $      | 965,590                     |   |   |                  | 23     |   |   | $ | 1,617,809 |   |
| Fair Value                                       |   | $                                             | 10,581,908 |   |                        |   |   |                                          |   | $      | 8,353,472                   |   |   |                  |   |   |   | $ | 18,935,380 |   |
|                                             |   |                                          |       |   |                        |   |   |                                          |   |   |                        |   |   |                  |   |   |   |   |   |   |
| At December 31, 2011                             |   |                                          |       |   |                        |   |   |                                          |   |   |                        |   |   |                  |   |   |   |   |   |   |
| Obligations of states and political subdivisions |   | $                                             | -          |   |                        |   | 0      |                                          |   | $      | 13,156                      |   |   |                  | 2      |   |   | $ | 13,156 |   |
| Corporate securities including public utilities  |   |                                          | 1,544,224  |   |                        |   | 47     |                                          |   |   | 723,922                     |   |   |                  | 12     |   |   |   | 2,268,146 |   |
| Mortgage-backed securities                       |   |                                          | 161,300    |   |                        |   | 3      |                                          |   |   | 195,600                     |   |   |                  | 1      |   |   |   | 356,900 |   |
| Redeemable preferred stock                       |   |                                          | 800        |   |                        |   | 1      |                                          |   |   | 128,400                     |   |   |                  | 1      |   |   |   | 129,200 |   |
| Total unrealized losses                          |   | $                                             | 1,706,324  |   |                        |   | 51     |                                          |   | $      | 1,061,078                   |   |   |                  | 16     |   |   | $ | 2,767,402 |   |
| Fair Value                                       |   | $                                             | 24,249,533 |   |                        |   |   |                                          |   | $      | 3,762,892                   |   |   |                  |   |   |   | $ | 28,012,425 |   |

----

|                                    |   | Unrealized Losses for Less than Twelve Months |      |   | No. of Investment Positions |   |   | Unrealized Losses for More than Twelve Months |   |   | No. of Investment Positions |   |   | Total Unrealized Losses |   |
|-----------------------------------------|--------|----------------------------------------------------|-----------|--------|-----------------------------|--------|--------|----------------------------------------------------|--------|--------|-----------------------------|--------|--------|------------------------------|--------|
| At June 30, 2012                        |   |                                               |      |   |                        |   |   |                                               |   |   |                        |   |   |                         |   |
| Non-redeemable preferred stock          |   | $                                                  | 213       |   |                        |   | 1      |                                               |   | $      | 1,584                       |   |   |                         | 1      |   |   | $ | 1,797 |   |
| Industrial, miscellaneous and all other |   |                                               | 582,951   |   |                        |   | 61     |                                               |   |   | 771,876                     |   |   |                         | 30     |   |   |   | 1,354,827 |   |
| Total unrealized losses                 |   | $                                                  | 583,164   |   |                        |   | 62     |                                               |   | $      | 773,460                     |   |   |                         | 31     |   |   | $ | 1,356,624 |   |
| Fair Value                              |   | $                                                  | 2,213,889 |   |                        |   |   |                                               |   | $      | 1,005,768                   |   |   |                         |   |   |   | $ | 3,219,657 |   |
|                                    |   |                                               |      |   |                        |   |   |                                               |   |   |                        |   |   |                         |   |   |   |   |   |   |
| At December 31, 2011                    |   |                                               |      |   |                        |   |   |                                               |   |   |                        |   |   |                         |   |   |   |   |   |   |
| Non-redeemable preferred stock          |   | $                                                  | -         |   |                        |   | -      |                                               |   | $      | 1,843                       |   |   |                         | 2      |   |   | $ | 1,843 |   |
| Industrial, miscellaneous and all other |   |                                               | 955,400   |   |                        |   | 79     |                                               |   |   | 378,024                     |   |   |                         | 14     |   |   |   | 1,333,424 |   |
| Total unrealized losses                 |   | $                                                  | 955,400   |   |                        |   | 79     |                                               |   | $      | 379,867                     |   |   |                         | 16     |   |   | $ | 1,335,267 |   |
| Fair Value                              |   | $                                                  | 2,857,082 |   |                        |   |   |                                               |   | $      | 560,529                     |   |   |                         |   |   |   | $ | 3,417,611 |   |

----

|                       |   | AmortizedCost |        |   | Estimated FairValue |   |
|----------------------------|--------|---------------|-------------|--------|---------------------|--------|
| Held to Maturity:          |   |          |        |   |                |   |
| Due in 2012                |   | $             | 577,059     |   |                | $      | 582,761 |   |
| Due in 2013 through 2016   |   |          | 19,254,387  |   |                |   | 20,942,282 |   |
| Due in 2017 through 2021   |   |          | 50,167,095  |   |                |   | 54,454,126 |   |
| Due after 2021             |   |          | 54,734,973  |   |                |   | 61,201,021 |   |
| Mortgage-backed securities |   |          | 5,348,172   |   |                |   | 5,442,218 |   |
| Redeemable preferred stock |   |          | 1,510,878   |   |                |   | 1,578,350 |   |
| Total held to maturity     |   | $             | 131,592,564 |   |                | $      | 144,200,758 |   |

|                           |   | AmortizedCost |      |   | Estimated FairValue |   |
|--------------------------------|--------|---------------|-----------|--------|---------------------|--------|
| Available for Sale:            |   |          |      |   |                |   |
| Due in 2012 through 2015       |   | $             | -         |   |                | $      | - |   |
| Due in 2013 through 2016       |   |          | -         |   |                |   | - |   |
| Due in 2017 through 2021       |   |          | -         |   |                |   | - |   |
| Due after 2021                 |   |          | -         |   |                |   | - |   |
| Non-redeemable preferred stock |   |          | 20,281    |   |                |   | 18,484 |   |
| Common stock                   |   |          | 6,840,761 |   |                |   | 5,863,949 |   |
| Total available for sale       |   | $             | 6,861,042 |   |                | $      | 5,882,433 |   |

|                                        |   | Three Months Ended June 30, |    |   | Six Months Ended June 30, |   |
|---------------------------------------------|--------|-----------------------------|---------|--------|---------------------------|--------|
|                                        |   | 2012                        |    |   | 2011                      |   |   | 2012 |   |   | 2011 |   |
| Fixed maturity securities held to maturity: |   |                        |    |   |                      |   |   |   |   |   |   |   |
| Gross realized gains                        |   | $                           | 129,651 |   |                      | $      | 166,465 |   |   | $ | 137,255 |   |   | $ | 319,957 |   |
| Gross realized losses                       |   |                        | -       |   |                      |   | (93,736 | ) |   |   | (334 | ) |   |   | (131,821 | ) |
| Other than temporary impairments            |   |                        | (45,000 | )      |                      |   | (30,000 | ) |   |   | (90,000 | ) |   |   | (65,129 | ) |
|                                        |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Securities available for sale:              |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Gross realized gains                        |   |                        | 15,372  |   |                      |   | 166,872 |   |   |   | 152,580 |   |   |   | 455,123 |   |
| Gross realized losses                       |   |                        | -       |   |                      |   | (27,950 | ) |   |   | (5,705 | ) |   |   | (34,804 | ) |
| Other than temporary impairments            |   |                        | -       |   |                      |   | - |   |   |   | - |   |   |   | - |   |
|                                        |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Other assets:                               |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |
| Gross realized gains                        |   |                        | 54,583  |   |                      |   | 1,045,915 |   |   |   | 86,870 |   |   |   | 1,055,071 |   |
| Gross realized losses                       |   |                        | (12,680 | )      |                      |   | - |   |   |   | (12,680 | ) |   |   | (60,870 | ) |
| Other than temporary impairments            |   |                        | -       |   |                      |   | - |   |   |   | - |   |   |   | - |   |
| Total                                       |   | $                           | 141,926 |   |                      | $      | 1,227,566 |   |   | $ | 267,986 |   |   | $ | 1,537,527 |   |

----

|                                                                          |   | Three Months Ended June 30, |      |   | Six Months Ended June 30, |   |
|-------------------------------------------------------------------------------|--------|-----------------------------|-----------|--------|---------------------------|--------|
|                                                                          |   | 2012                        |      |   | 2011                      |   |   | 2012 |   |   | 2011 |   |
| Fixed maturity securities                                                     |   | $                           | 1,943,272 |   |                      | $      | 1,986,480 |   |   | $ | 3,853,617 |   |   | $ | 3,739,257 |   |
| Equity securities                                                             |   |                        | 68,146    |   |                      |   | 59,000 |   |   |   | 131,723 |   |   |   | 126,986 |   |
| Mortgage loans on real estate                                                 |   |                        | 2,075,430 |   |                      |   | 1,699,220 |   |   |   | 4,212,006 |   |   |   | 2,986,433 |   |
| Real estate                                                                   |   |                        | 800,339   |   |                      |   | 566,777 |   |   |   | 1,458,794 |   |   |   | 1,138,089 |   |
| Policy and other loans                                                        |   |                        | 189,947   |   |                      |   | 210,914 |   |   |   | 418,274 |   |   |   | 424,032 |   |
| Short-term investments, principally gains on sale of mortgage loans and other |   |                        | 2,006,325 |   |                      |   | 1,346,332 |   |   |   | 4,043,731 |   |   |   | 2,720,664 |   |
| Gross investment income                                                       |   |                        | 7,083,459 |   |                      |   | 5,868,723 |   |   |   | 14,118,145 |   |   |   | 11,135,461 |   |
| Investment expenses                                                           |   |                        | (945,561  | )      |                      |   | (1,151,365 | ) |   |   | (1,926,200 | ) |   |   | (2,147,655 | ) |
| Net investment income                                                         |   | $                           | 6,137,898 |   |                      | $      | 4,717,358 |   |   | $ | 12,191,945 |   |   | $ | 8,987,806 |   |

----

| Allowance for Credit Losses and Recorded Investment in Mortgage Loans |   |
|-----------------------------------------------------------------------|--------|
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                  |   | Commercial |   |   | Residential |   |   | Residential Construction |   |   | Total |   |
| June 30, 2012                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for credit losses:                                          |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance - January 1, 2011                                   |   | $ | - |   |   | $ | 4,338,805 |   |   | $ | 542,368 |   |   | $ | 4,881,173 |   |
|    Charge-offs                                         |   |   | - |   |   |   | (168,154 | ) |   |   | (250,524 | ) |   |   | (418,678 | ) |
|    Provision                                           |   |   | - |   |   |   | 236,915 |   |   |   | - |   |   |   | 236,915 |   |
| Ending balance -March 31, 2012                                        |   | $ | - |   |   | $ | 4,407,566 |   |   | $ | 291,844 |   |   | $ | 4,699,410 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment                 |   | $ | - |   |   | $ | 885,968 |   |   | $ | 188,285 |   |   | $ | 1,074,253 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment                 |   | $ | - |   |   | $ | 3,521,598 |   |   | $ | 103,559 |   |   | $ | 3,625,157 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: loans acquired with deteriorated credit quality       |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage loans:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                                        |   | $ | 41,090,847 |   |   | $ | 52,498,871 |   |   | $ | 9,085,386 |   |   | $ | 102,675,104 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment                 |   | $ | 2,842,962 |   |   | $ | 5,403,395 |   |   | $ | 3,712,761 |   |   | $ | 11,959,118 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment                 |   | $ | 38,247,885 |   |   | $ | 47,095,476 |   |   | $ | 5,372,625 |   |   | $ | 90,715,986 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: loans acquired with deteriorated credit quality       |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2011                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for credit losses:                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Beginning balance - January 1, 2011                                   |   | $ | - |   |   | $ | 6,212,072 |   |   | $ | 858,370 |   |   | $ | 7,070,442 |   |
|    Charge-offs                                         |   |   | - |   |   |   | (2,994,715 | ) |   |   | (430,274 | ) |   |   | (3,424,989 | ) |
|    Provision                                           |   |   | - |   |   |   | 1,121,448 |   |   |   | 114,272 |   |   |   | 1,235,720 |   |
| Ending balance - December 31, 2011                                    |   | $ | - |   |   | $ | 4,338,805 |   |   | $ | 542,368 |   |   | $ | 4,881,173 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment                 |   | $ | - |   |   | $ | 738,975 |   |   | $ | 250,524 |   |   | $ | 989,499 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment                 |   | $ | - |   |   | $ | 3,599,830 |   |   | $ | 291,844 |   |   | $ | 3,891,674 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: loans acquired with deteriorated credit quality       |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage loans:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                                        |   | $ | 48,433,147 |   |   | $ | 54,344,327 |   |   | $ | 17,259,666 |   |   | $ | 120,037,140 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment                 |   | $ | 2,758,235 |   |   | $ | 4,611,995 |   |   | $ | 5,645,865 |   |   | $ | 13,016,095 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment                 |   | $ | 45,674,912 |   |   | $ | 49,732,332 |   |   | $ | 11,613,801 |   |   | $ | 107,021,045 |   |
|                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: loans acquired with deteriorated credit quality       |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |

----

| Age Analysis of Past Due Mortgage Loans                                                             |   |
|-----------------------------------------------------------------------------------------------------|--------|
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                |   | 30-59 DaysPast Due |   |   | 60-89 DaysPast Due |   |   | Greater Than90 Days 1) |   |   | In Foreclosure 1) |   |   | TotalPast Due |   |   | Current |   |   | TotalMortgage Loans |   |   | Allowance forLoan Losses |   |   | Net MortgageLoans |   |
| June 30, 2012                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                          |   | $ | 572,215 |   |   | $ | - |   |   | $ | - |   |   | $ | 2,842,962 |   |   | $ | 3,415,177 |   |   | $ | 37,675,670 |   |   | $ | 41,090,847 |   |   | $ | - |   |   | $ | 41,090,847 |   |
| Residential                                                                                         |   |   | 807,321 |   |   |   | 2,179,410 |   |   |   | 4,251,414 |   |   |   | 5,403,395 |   |   |   | 12,641,540 |   |   |   | 39,857,331 |   |   |   | 52,498,871 |   |   |   | (4,407,566 | ) |   |   | 48,091,305 |   |
| Residential  Construction                                                                 |   |   | 427,950 |   |   |   | - |   |   |   | 1,083,731 |   |   |   | 3,712,761 |   |   |   | 5,224,442 |   |   |   | 3,860,944 |   |   |   | 9,085,386 |   |   |   | (291,844 | ) |   |   | 8,793,542 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                               |   | $ | 1,807,486 |   |   | $ | 2,179,410 |   |   | $ | 5,335,145 |   |   | $ | 11,959,118 |   |   | $ | 21,281,159 |   |   | $ | 81,393,945 |   |   | $ | 102,675,104 |   |   | $ | (4,699,410 | ) |   | $ | 97,975,694 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2011                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial                                                                                          |   | $ | - |   |   | $ | - |   |   | $ | 1,053,500 |   |   | $ | 2,758,235 |   |   | $ | 3,811,735 |   |   | $ | 44,621,412 |   |   | $ | 48,433,147 |   |   | $ | - |   |   | $ | 48,433,147 |   |
| Residential                                                                                         |   |   | 2,478,084 |   |   |   | 2,058,261 |   |   |   | 5,500,340 |   |   |   | 4,611,995 |   |   |   | 14,648,680 |   |   |   | 39,695,647 |   |   |   | 54,344,327 |   |   |   | (4,338,805 | ) |   |   | 50,005,522 |   |
| Residential  Construction                                                                 |   |   | 859,651 |   |   |   | 682,532 |   |   |   | 309,651 |   |   |   | 5,645,865 |   |   |   | 7,497,699 |   |   |   | 9,761,967 |   |   |   | 17,259,666 |   |   |   | (542,368 | ) |   |   | 16,717,298 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                                                                               |   | $ | 3,337,735 |   |   | $ | 2,740,793 |   |   | $ | 6,863,491 |   |   | $ | 13,016,095 |   |   | $ | 25,958,114 |   |   | $ | 94,079,026 |   |   | $ | 120,037,140 |   |   | $ | (4,881,173 | ) |   | $ | 115,155,967 |   |
|                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1) Interest income is not recognized on loans past due greater than 90 days or in foreclosure. |   |

----

| Impaired Loans                             |   |
|--------------------------------------------|--------|
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                       |   | Recorded Investment |   |   | Unpaid Principal Balance |   |   | Related Allowance |   |   | Average Recorded Investment |   |   | Interest Income Recognized |   |
| June 30, 2012                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With no related allowance recorded:        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial               |   | $ | 2,842,962 |   |   | $ | 2,842,962 |   |   | $ | - |   |   | $ | 2,842,962 |   |   | $ | - |   |
|    Residential              |   |   | 4,251,414 |   |   |   | 4,251,414 |   |   |   | - |   |   |   | 4,251,414 |   |   |   | - |   |
|    Residential construction |   |   | 1,083,731 |   |   |   | 1,083,731 |   |   |   | - |   |   |   | 1,083,731 |   |   |   | - |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded:                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial               |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|    Residential              |   |   | 5,403,395 |   |   |   | 5,403,395 |   |   |   | 885,968 |   |   |   | 5,403,395 |   |   |   | - |   |
|    Residential construction |   |   | 3,712,761 |   |   |   | 3,712,761 |   |   |   | 188,285 |   |   |   | 3,712,761 |   |   |   | - |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total:                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial               |   | $ | 2,842,962 |   |   | $ | 2,842,962 |   |   | $ | - |   |   | $ | 2,842,962 |   |   | $ | - |   |
|    Residential              |   |   | 9,654,809 |   |   |   | 9,654,809 |   |   |   | 885,968 |   |   |   | 9,654,809 |   |   |   | - |   |
|    Residential construction |   |   | 4,796,492 |   |   |   | 4,796,492 |   |   |   | 188,285 |   |   |   | 4,796,492 |   |   |   | - |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2011                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With no related allowance recorded:        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial               |   | $ | 3,811,735 |   |   | $ | 3,811,735 |   |   | $ | - |   |   | $ | 3,811,735 |   |   | $ | - |   |
|    Residential              |   |   | 5,500,340 |   |   |   | 5,500,340 |   |   |   | - |   |   |   | 5,500,340 |   |   |   | - |   |
|    Residential construction |   |   | 309,651 |   |   |   | 309,651 |   |   |   | - |   |   |   | 309,651 |   |   |   | - |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| With an allowance recorded:                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial               |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |
|    Residential              |   |   | 4,611,995 |   |   |   | 4,611,995 |   |   |   | 738,975 |   |   |   | 4,611,995 |   |   |   | - |   |
|    Residential construction |   |   | 5,645,865 |   |   |   | 5,645,865 |   |   |   | 250,524 |   |   |   | 5,645,865 |   |   |   | - |   |
|                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total:                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Commercial               |   | $ | 3,811,735 |   |   | $ | 3,811,735 |   |   | $ | - |   |   | $ | 3,811,735 |   |   | $ | - |   |
|    Residential              |   |   | 10,112,335 |   |   |   | 10,112,335 |   |   |   | 738,975 |   |   |   | 10,112,335 |   |   |   | - |   |
|    Residential construction |   |   | 5,955,516 |   |   |   | 5,955,516 |   |   |   | 250,524 |   |   |   | 5,955,516 |   |   |   | - |   |

----

| Mortgage Loan Credit Exposure                 |   |
|-----------------------------------------------|--------|
| Credit Risk Profile Based on Payment Activity |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          |   | Commercial |   |   | Residential |   |   | Residential Construction |   |   | Total |   |
|                                          |   | June 30, 2012 |   |   | December31, 2011 |   |   | June 30, 2012 |   |   | December31, 2011 |   |   | June 30, 2012 |   |   | December31, 2011 |   |   | June 30, 2012 |   |   | December31, 2011 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Performing                                    |   | $ | 38,247,885 |   |   | $ | 44,621,412 |   |   | $ | 42,844,062 |   |   | $ | 44,231,992 |   |   | $ | 4,288,894 |   |   | $ | 11,304,150 |   |   | $ | 85,380,841 |   |   | $ | 100,157,554 |   |
| Nonperforming                                 |   |   | 2,842,962 |   |   |   | 3,811,735 |   |   |   | 9,654,809 |   |   |   | 10,112,335 |   |   |   | 4,796,492 |   |   |   | 5,955,516 |   |   |   | 17,294,263 |   |   |   | 19,879,586 |   |
|                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                         |   | $ | 41,090,847 |   |   | $ | 48,433,147 |   |   | $ | 52,498,871 |   |   | $ | 54,344,327 |   |   | $ | 9,085,386 |   |   | $ | 17,259,666 |   |   | $ | 102,675,104 |   |   | $ | 120,037,140 |   |

|                     |   | Mortgage Loans on Nonaccrual Status |       |
|--------------------------|--------|-------------------------------------|------------|
|                     |   |                                |       |
|                     |   | As of June 30,                      |       |   | As of December 31, |   |
|                     |   | 2012                                |       |   | 2011 |   |
| Commercial               |   | $                                   | 2,842,962  |   |   | $ | 3,811,735 |   |
| Residential              |   |                                | 9,654,809  |   |   |   | 10,112,335 |   |
| Residential construction |   |                                | 4,796,492  |   |   |   | 5,955,516 |   |
| Total                    |   | $                                   | 17,294,263 |   |   | $ | 19,879,586 |   |

|                         |   | As of June 30, |      |   | As of December 31, |   |
|------------------------------|--------|----------------|-----------|--------|--------------------|--------|
|                         |   | 2012           |      |   | 2011               |   |
| Balance, beginning of period |   | $              | 2,337,875 |   |               | $      | 5,899,025 |   |
| Provisions for losses        |   |           | 1,535,315 |   |               |   | 1,667,805 |   |
| Charge-offs                  |   |           | (249,370  | )      |               |   | (5,228,955 | ) |
| Balance, end of period       |   | $              | 3,623,820 |   |               | $      | 2,337,875 |   |

----

----

|                                        |   | Three Months EndedJune 30, |      |   | Six Months EndedJune 30, |   |
|---------------------------------------------|--------|----------------------------|-----------|--------|--------------------------|--------|
|                                        |   | 2012                       |      |   | 2011                     |   |   | 2012 |   |   | 2011 |   |
| Numerator:                                  |   |                       |      |   |                     |   |   |   |   |   |   |   |
| Net earnings (loss)                         |   | $                          | 3,593,032 |   |                     | $      | 204,867 |   |   | $ | 5,255,215 |   |   | $ | (313,606 | ) |
| Denominator:                                |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic weighted-average shares outstanding   |   |                       | 9,540,238 |   |                     |   | 9,350,042 |   |   |   | 9,518,058 |   |   |   | 9,311,131 |   |
| Effect of dilutive securities:              |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Employee stock options                      |   |                       | 361,526   |   |                     |   | 42,694 |   |   |   | 166,810 |   |   |   | - |   |
| Dilutive potential common shares            |   |                       | 361,526   |   |                     |   | 42,694 |   |   |   | 166,810 |   |   |   | - |   |
| Diluted weighted-average shares outstanding |   |                       | 9,901,764 |   |                     |   | 9,392,736 |   |   |   | 9,684,868 |   |   |   | 9,311,131 |   |
|                                        |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Basic net earnings (loss) per share         |   | $                          | 0.38      |   |                     | $      | 0.02 |   |   | $ | 0.55 |   |   | $ | (0.03 | ) |
|                                        |   |                       |      |   |                     |   |   |   |   |   |   |   |   |   |   |   |
| Diluted net earnings (loss) per share       |   | $                          | 0.36      |   |                     | $      | 0.02 |   |   | $ | 0.54 |   |   | $ | (0.03 | ) |

----

|                                      |   | Life Insurance |        |   | Cemetery/Mortuary |   |        | Mortgage |   |   | Reconciling Items |   |   | Consolidated |         |
|-------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|-------------|----------|--------|--------|-------------------|--------|--------|--------------|--------------|
| For the Three Months Ended                |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |
| June 30, 2012                             |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |
| Revenues from external customers          |   | $              | 17,481,537  |   |              | $      | 2,730,517   |     |   | $      | 36,316,156        |   |   | $            | -            |   |   | $ | 56,528,210 |   |
| Intersegment revenues                     |   |           | 2,081,734   |   |              |   | 380,565     |     |   |   | 75,882            |   |   |         | (2,538,181   | ) |   |   | - |   |
| Segment profit (loss) before income taxes |   |           | 2,054,297   |   |              |   | (77,463     | )        |   |   | 3,059,543         |   |   |         | -            |   |   |   | 5,036,377 |   |
|                                      |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| For the Three Months Ended                |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| June 30, 2011                             |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| Revenues from external customers          |   | $              | 16,598,670  |   |              | $      | 3,723,533   |     |   | $      | 16,144,215        |   |   | $            | -            |   |   | $ | 36,466,418 |   |
| Intersegment revenues                     |   |           | 1,632,386   |   |              |   | 480,581     |     |   |   | 60,749            |   |   |         | (2,173,716   | ) |   |   | - |   |
| Segment profit (loss) before income taxes |   |           | 338,044     |   |              |   | 662,744     |     |   |   | (859,610          | )      |   |         | -            |   |   |   | 141,178 |   |
|                                      |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| For the Six Months Ended                  |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| June 30, 2012                             |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| Revenues from external customers          |   | $              | 35,108,886  |   |              | $      | 5,690,157   |     |   | $      | 63,052,390        |   |   |         |         |   |   | $ | 103,851,433 |   |
|                                      |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| Intersegment revenues                     |   |           | 4,160,833   |   |              |   | 757,558     |     |   |   | 151,289           |   |   |         | (5,069,680   | ) |   |   | - |   |
|                                      |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| Segment profit before income taxes        |   |           | 2,891,861   |   |              |   | 149,092     |     |   |   | 4,324,016         |   |   |         | -            |   |   |   | 7,364,969 |   |
|                                      |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| Identifiable Assets                       |   |           | 520,595,067 |   |              |   | 112,435,625 |     |   |   | 40,261,098        |   |   |         | (119,681,252 | ) |   |   | 553,610,538 |   |
| Goodwill                                  |   |           | 391,848     |   |              |   | 285,191     |     |   |   | -                 |   |   |         | -            |   |   |   | 677,039 |   |
|                                      |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| For the Six Months Ended                  |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| June 30, 2011                             |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| Revenues from external customers          |   | $              | 33,746,991  |   |              | $      | 6,756,619   |     |   | $      | 30,134,988        |   |   | $            | -            |   |   | $ | 70,638,598 |   |
|                                      |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| Intersegment revenues                     |   |           | 3,699,098   |   |              |   | 948,606     |     |   |   | 121,086           |   |   |         | (4,768,790   | ) |   |   | - |   |
|                                      |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| Segment profit (loss) before income taxes |   |           | 1,417,523   |   |              |   | 814,368     |     |   |   | (3,413,295        | )      |   |         | -            |   |   |   | (1,181,404 | ) |
|                                      |   |           |        |   |              |   |        |     |   |   |              |   |   |         |         |   |   |   |   |   |
| Identifiable Assets                       |   |           | 474,375,686 |   |              |   | 111,945,435 |     |   |   | 24,999,574        |   |   |         | (119,549,486 | ) |   |   | 491,771,209 |   |
| Goodwill                                  |   |           | 391,848     |   |              |   | 285,191     |     |   |   | -                 |   |   |         | -            |   |   |   | 677,039 |   |

----

----

----

|                                                                    |   | Total  |         |   | Quoted Prices inActive Markets forIdentical Assets(Level 1) |   |      | Significant Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|-------------------------------------------------------------------------|--------|--------|--------------|--------|-------------------------------------------------------------|--------|-----------|----------------------------------------|--------|--------|-----------------------------------------------|--------|
| Assets accounted for at fair value on a recurring basis                 |   |   |         |   |                                                        |   |      |                                   |   |   |                                          |   |
| Non-redeemable preferred stock                                          |   | $      | 18,484       |   |                                                        | $      | 18,484    |                                   |   | $      | -                                             |   |   | $ | - |   |
| Common stock                                                            |   |   | 5,863,949    |   |                                                        |   | 5,863,949 |                                   |   |   | -                                             |   |   |   | - |   |
| Total securities available for sale                                     |   |   | 5,882,433    |   |                                                        |   | 5,882,433 |                                   |   |   | -                                             |   |   |   | - |   |
| Restricted assets of cemeteries and mortuaries                          |   |   | 573,857      |   |                                                        |   | 573,857   |                                   |   |   | -                                             |   |   |   | - |   |
| Cemetery perpetual care trust investments                               |   |   | 627,293      |   |                                                        |   | 627,293   |                                   |   |   | -                                             |   |   |   | - |   |
| Derivatives - interest rate lock commitments                            |   |   | 5,218,290    |   |                                                        |   | -         |                                   |   |   | -                                             |   |   |   | 5,218,290 |   |
| Total assets accounted for at fair value on a recurring basis           |   | $      | 12,301,873   |   |                                                        | $      | 7,083,583 |                                   |   | $      | -                                             |   |   | $ | 5,218,290 |   |
|                                                                    |   |   |         |   |                                                        |   |      |                                   |   |   |                                          |   |   |   |   |   |
| Liabilities accounted for at fair value on a  recurring basis |   |   |         |   |                                                        |   |      |                                   |   |   |                                          |   |   |   |   |   |
| Policyholder account balances                                           |   | $      | (50,425,076  | )      |                                                        | $      | -         |                                   |   | $      | -                                             |   |   | $ | (50,425,076 | ) |
| Future policy benefits - annuities                                      |   |   | (65,511,513  | )      |                                                        |   | -         |                                   |   |   | -                                             |   |   |   | (65,511,513 | ) |
| Derivatives - bank loan interest rate swaps                             |   |   | (107,779     | )      |                                                        |   | -         |                                   |   |   | -                                             |   |   |   | (107,779 | ) |
|    - call options                                        |   |   | (71,865      | )      |                                                        |   | (71,865   | )                                      |   |   | -                                             |   |   |   | - |   |
|    - interest rate lock commitments                      |   |   | (618,858     | )      |                                                        |   | -         |                                   |   |   | -                                             |   |   |   | (618,858 | ) |
| Total liabilities accounted for at fair value on a recurring basis      |   | $      | (116,735,091 | )      |                                                        | $      | (71,865   | )                                      |   | $      | -                                             |   |   | $ | (116,663,226 | ) |

----

|                                          |   | Policyholder Account Balances |        |   | Future Policy Benefits - Annuities |   |        | Interest Rate Lock Commitments |   |   | Bank Loan Interest Rate Swaps |   |
|-----------------------------------------------|--------|-------------------------------|-------------|--------|-----------------------------------------|--------|-------------|--------------------------------|--------|--------|-------------------------------|--------|
|                                          |   |                          |        |   |                                    |   |        |                           |   |   |                          |   |
| Balance - December 31, 2011                   |   | $                             | (50,926,020 | )      |                                    | $      | (65,281,586 | )                              |   | $      | 1,694,541                     |   |   | $ | (117,812 | ) |
|                                          |   |                          |        |   |                                    |   |        |                           |   |   |                          |   |   |   |   |   |
| Total gains (losses):                         |   |                          |        |   |                                    |   |        |                           |   |   |                          |   |   |   |   |   |
|                                          |   |                          |        |   |                                    |   |        |                           |   |   |                          |   |   |   |   |   |
| Included in earnings                          |   |                          | 500,944     |   |                                    |   | (229,927    | )                              |   |   | -                             |   |   |   | - |   |
|                                          |   |                          |        |   |                                    |   |        |                           |   |   |                          |   |   |   |   |   |
| Included in other comprehensive income (loss) |   |                          | -           |   |                                    |   | -           |                           |   |   | 2,904,891                     |   |   |   | 10,033 |   |
|                                          |   |                          |        |   |                                    |   |        |                           |   |   |                          |   |   |   |   |   |
| Balance - June 30, 2012                       |   | $                             | (50,425,076 | )      |                                    | $      | (65,511,513 | )                              |   | $      | 4,599,432                     |   |   | $ | (107,779 | ) |

|                                                             |   |   |      |   | Quoted Prices    |   |   |        |   |   |         |   |
|------------------------------------------------------------------|--------|--------|-----------|--------|------------------|--------|--------|-------------|--------|--------|--------------|--------|
|                                                             |   |   |      |   | in Active        |   |   | Significant |   |   | Significant  |   |
|                                                             |   |   |      |   | Markets for      |   |   | Observable  |   |   | Unobservable |   |
|                                                             |   |   |      |   | Identical Assets |   |   | Inputs      |   |   | Inputs       |   |
|                                                             |   | Total  |      |   | (Level 1)        |   |   | (Level 2)   |   |   | (Level 3)    |   |
| Assets accounted for at fair value on a nonrecurring basis       |   |   |      |   |             |   |   |        |   |   |         |   |
| Mortgage loans on real estate                                    |   | $      | 3,599,000 |   |             | $      | -      |        |   | $      | -            |   |   | $ | 3,599,000 |   |
| Total assets accounted for at fair value on a nonrecurring basis |   | $      | 3,599,000 |   |             | $      | -      |        |   | $      | -            |   |   | $ | 3,599,000 |   |

----

|                                                                                                                                              |   | Total  |         |   | Quoted Prices in Active Markets for Identical Assets(Level 1) |   |      | Significant Observable Inputs(Level 2) |   |   | Significant Unobservable Inputs(Level 3) |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------------|--------|--------------------------------------------------------------------|--------|-----------|---------------------------------------------|--------|--------|------------------------------------------|--------|
| Assets accounted for at fair value on a recurring basis                                                                                           |   |   |         |   |                                                               |   |      |                                        |   |   |                                     |   |
| Non-redeemable preferred stock                                                                                                                    |   | $      | 18,438       |   |                                                               | $      | 18,438    |                                        |   | $      | -                                        |   |   | $ | - |   |
| Common stock                                                                                                                                      |   |   | 6,280,954    |   |                                                               |   | 6,280,954 |                                        |   |   | -                                        |   |   |   | - |   |
| Total securities available for sale                                                                                                               |   |   | 6,299,392    |   |                                                               |   | 6,299,392 |                                        |   |   | -                                        |   |   |   | - |   |
| Restricted assets of cemeteries and mortuaries                                                                                                    |   |   | 548,761      |   |                                                               |   | 548,761   |                                        |   |   | -                                        |   |   |   | - |   |
| Cemetery perpetual care trust investments                                                                                                         |   |   | 617,107      |   |                                                               |   | 617,107   |                                        |   |   | -                                        |   |   |   | - |   |
| Derivatives - interest rate lock commitments                                                                                                      |   |   | 1,904,901    |   |                                                               |   | -         |                                        |   |   | -                                        |   |   |   | 1,904,901 |   |
| Total assets accounted for at fair value on a recurring basis                                                                                     |   | $      | 9,370,161    |   |                                                               | $      | 7,465,260 |                                        |   | $      | -                                        |   |   | $ | 1,904,901 |   |
| Liabilities accounted for at fair value on a recurring basis                                                                                      |   |   |         |   |                                                               |   |      |                                        |   |   |                                     |   |   |   |   |   |
| Policyholder account balances                                                                                                                     |   | $      | (50,926,020  | )      |                                                               | $      | -         |                                        |   | $      | -                                        |   |   | $ | (50,926,020 | ) |
| Future policy benefits - annuities                                                                                                                |   |   | (65,281,586  | )      |                                                               |   | -         |                                        |   |   | -                                        |   |   |   | (65,281,586 | ) |
| Derivatives - bank loan interest rate swaps                                                                                                       |   |   | (117,812     | )      |                                                               |   | -         |                                        |   |   | -                                        |   |   |   | (117,812 | ) |
|                    - call options                  |   |   | (80,102      | )      |                                                               |   | (80,102   | )                                           |   |   | -                                        |   |   |   | - |   |
|                    - interest rate lock commitment |   |   | (210,360     | )      |                                                               |   | -         |                                        |   |   | -                                        |   |   |   | (210,360 | ) |
| Total liabilities accounted for at fair value on a recurring basis                                                                                |   | $      | (116,615,880 | )      |                                                               | $      | (80,102   | )                                           |   | $      | -                                        |   |   | $ | (116,535,778 | ) |

|                        |   | Policyholder Account Balances |        |   | Future Policy Benefits - Annuities |   |        | Interest Rate ock Commitments |   |   | Bank Loan Interest Rate Swaps |   |
|-----------------------------|--------|-------------------------------|-------------|--------|------------------------------------|--------|-------------|-------------------------------|--------|--------|-------------------------------|--------|
| Balance - December 31, 2010 |   | $                             | (52,340,807 | )      |                               | $      | (65,936,445 | )                             |   | $      | 873,059                       |   |   | $ | (116,533 | ) |
| Total gains (losses):       |   |                          |        |   |                               |   |        |                          |   |   |                          |   |   |   |   |   |
| Included in earnings        |   |                          | 1,414,787   |   |                               |   | 654,859     |                          |   |   | -                             |   |   |   | - |   |
| Included in other           |   |                          |        |   |                               |   |        |                          |   |   |                          |   |   |   |   |   |
| comprehensive income        |   |                          | -           |   |                               |   | -           |                          |   |   | 821,482                       |   |   |   | (1,279 | ) |
| Balance - December 31, 2011 |   | $                             | (50,926,020 | )      |                               | $      | (65,281,586 | )                             |   | $      | 1,694,541                     |   |   | $ | (117,812 | ) |

----

|                                          |   |   |       |   | Quoted Prices    |   |   |        |   |   |         |   |
|-----------------------------------------------|--------|--------|------------|--------|------------------|--------|--------|-------------|--------|--------|--------------|--------|
|                                          |   |   |       |   | in Active        |   |   | Significant |   |   | Significant  |   |
|                                          |   |   |       |   | Markets for      |   |   | Observable  |   |   | Unobservable |   |
|                                          |   |   |       |   | Identical Assets |   |   | Inputs      |   |   | Inputs       |   |
|                                          |   | Total  |       |   | (Level 1)        |   |   | (Level 2)   |   |   | (Level 3)    |   |
| Assets accounted for at fair value on a       |   |   |       |   |             |   |   |        |   |   |         |   |
| nonrecurring basis                            |   |   |       |   |             |   |   |        |   |   |         |   |
| Mortgage loans on real estate                 |   | $      | 5,354,600  |   |             |   | -      |        |   |   | -            |   |   | $ | 5,354,600 |   |
| Other real estate owned held for investment   |   |   | 5,419,103  |   |             |   | -      |        |   |   | -            |   |   |   | 5,419,103 |   |
| Other real estate owned held for sale         |   |   | 514,000    |   |             |   | -      |        |   |   | -            |   |   |   | 514,000 |   |
| Total assets accounted for at fair value on a |   |   |       |   |             |   |   |        |   |   |         |   |   |   |   |   |
|    nonrecurring basis          |   | $      | 11,287,703 |   |             | $      | -      |        |   | $      | -            |   |   | $ | 11,287,703 |   |

----

| · | Failure to deliver original documents specified by the investor,                                |
|--------|-------------------------------------------------------------------------------------------------|
| · | The existence of misrepresentation or fraud in the origination of the loan,                     |
| · | The loan becomes delinquent due to nonpayment during the first several months after it is sold, |
| · | Early pay-off of a loan, as defined by the agreements,                                          |
| · | Excessive time to settle a loan,                                                                |
| · | Investor declines purchase, and                                                                 |
| · | Discontinued product and expired commitment.                                                    |

----

| · | Research reasons for rejection,                      |
|--------|------------------------------------------------------|
| · | Provide additional documents,                        |
| · | Request investor exceptions,                         |
| · | Appeal rejection decision to purchase committee, and |
| · | Commit to secondary investors.                       |

| · | For loans that have an active market, SecurityNational Mortgage uses the market price on the repurchase date.                                                                                                                                                                                                |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | For loans where there is no market but there is a similar product, SecurityNational Mortgage uses the market value for the similar product on the repurchase date.                                                                                                                                           |
| · | For loans where no active market exists on the repurchase date, SecurityNational Mortgage determines that the unpaid principal balance best approximates the market value on the repurchase date, after considering the fair value of the underlying real estate collateral and estimated future cash flows. |

----

----

|                                             |   | Fair Value of Derivative Instruments |   |
|--------------------------------------------------|--------|--------------------------------------|--------|
|                                             |   | Asset Derivatives                    |   | Liability Derivatives |   |
|                                             |   | June 30, 2012                        |   |   | December 31, 2011 |   | June 30, 2012 |   | December 31, 2011 |   |
|                                             |   | Balance Sheet Location               |   |   | Fair Value |   |   | Balance Sheet Location |   |   | Fair Value |   | Balance Sheet Location |   | Fair Value |   | Balance Sheet Location |   | Fair Value |   |
| Derivatives designated as hedging instruments:   |   |                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate lock and forward sales commitments |   | other assets                         |   |   | $ | 5,218,290 |   |   | other assets |   |   | $ | 1,904,901 |   | Other liabilities |   | $ | 618,858 |   | Other liabilities |   | $ | 210,360 |   |
| Call Options                                     |   |                                 | --     |   |   |   | -- |   |   |   | -- |   |   |   | -- |   | Other liabilities |   |   | 71,865 |   | Other liabilities |   |   | 80,102 |   |
| Interest rate swaps                              |   |                                 | --     |   |   |   | -- |   |   |   | -- |   |   |   | -- |   | Bank loans payable |   |   | 107,779 |   | Bank loans payable |   |   | 117,812 |   |
| Total                                            |   |                                 |   |   |   | $ | 5,218,290 |   |   |   |   |   |   | $ | 1,904,901 |   |   |   | $ | 798,502 |   |   |   | $ | 408,274 |   |

|                                          |   | Net Amount Gain (Loss) Recognized in OCI |      |   | Net Amount Gain (Loss) Recognized in OCI |   |
|-----------------------------------------------|--------|------------------------------------------|-----------|--------|------------------------------------------|--------|
|                                          |   | Three Months Ended June30,               |      |   | Six Months Ended June 30,                |   |
| Derivative - Cash Flow Hedging Relationships: |   | 2012                                     |      |   | 2011                                     |   |   | 2012 |   |   | 2011 |   |
| Interest Rate Lock Commitments                |   | $                                        | 1,928,111 |   |                                     | $      | 619,313 |   |   | $ | 2,904,891 |   |   | $ | 677,164 |   |
| Interest Rate Swaps                           |   |                                     | 2,058     |   |                                     |   | (7,336 | ) |   |   | 10,033 |   |   |   | 6,303 |   |
| Sub Total                                     |   |                                     | 1,930,169 |   |                                     |   | 611,977 |   |   |   | 2,914,924 |   |   |   | 683,467 |   |
| Tax Effect                                    |   |                                     | 656,412   |   |                                     |   | 208,071 |   |   |   | 991,074 |   |   |   | 232,377 |   |
| Total                                         |   | $                                        | 1,273,757 |   |                                     | $      | 403,906 |   |   | $ | 1,923,850 |   |   | $ | 451,090 |   |

----

----

----

----

----

| Cash                                     |   | $      | 313,616    |   |
|------------------------------------------|--------|--------|------------|--------|
| Receivables, net                         |   |   | 186,487    |   |
| Receivable from reinsurers               |   |   | 7,422,999  |   |
| Total assets acquired                    |   |   | 7,923,102  |   |
| Future life, annuity, and other benefits |   |   | (7,422,999 | )      |
| Other liabilities and accrued expenses   |   |   | (5,896     | )      |
| Total liabilities assumed                |   |   | (7,428,895 | )      |
| Fair value of net assets acquired        |   | $      | 494,207    |   |

|                                             |   | For the Six Months EndedJune 30,(unaudited) |        |
|--------------------------------------------------|--------|---------------------------------------------|-------------|
|                                             |   | 2012                                        |        |   | 2011 |   |
| Total revenues                                   |   | $                                           | 103,859,760 |   |   | $ | 70,666,913 |   |
| Net earnings                                     |   | $                                           | 5,256,652   |   |   | $ | (302,965 | ) |
| Net earnings per Class A equivalent common share |   | $                                           | 0.55        |   |   | $ | (0.03 | ) |
| Net earnings per Class A equivalent common share |   |                                        |        |   |   |   |   |   |
| assuming dilution                                |   | $                                           | 0.54        |   |   | $ | (0.03 | ) |
|                                             |   |                                        |        |   |   |   |   |   |

----

|                                  |   | Three months ended June 30(in thousands of dollars) |   |   | Six months ended June 30(in thousands of dollars) |   |
|---------------------------------------|--------|-----------------------------------------------------|--------|--------|---------------------------------------------------|--------|
|                                  |   | 2012                                                |   |   | 2011                                              |   |   | % Increase (Decrease) |   |   | 2012 |   |   | 2011 |   |   | % Increase (Decrease) |   |
| Revenues from external customers      |   |                                                |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income from loan originations         |   | $                                                   | 30,652 |   |                                              | $      | 13,592 |   |   |   | 126 | % |   | $ | 53,053 |   |   | $ | 24,677 |   |   |   | 115 | % |
| Secondary gains from investors        |   |                                                | 5,664  |   |                                              |   | 2,552 |   |   |   | 122 | % |   |   | 9,999 |   |   |   | 5,458 |   |   |   | 83 | % |
| Total                                 |   | $                                                   | 36,316 |   |                                              | $      | 16,144 |   |   |   | 125 | % |   | $ | 63,052 |   |   | $ | 30,135 |   |   |   | 109 | % |
| Earnings (Losses) before income taxes |   | $                                                   | 3,060  |   |                                              | $      | (860 | ) |   |   | 456 | % |   | $ | 4,324 |   |   | $ | (3,413 | ) |   |   | 227 | % |

----

| · | Failure to deliver original documents specified by the investor,                                |
|--------|-------------------------------------------------------------------------------------------------|
| · | The existence of misrepresentation or fraud in the origination of the loan,                     |
| · | The loan becomes delinquent due to nonpayment during the first several months after it is sold, |
| · | Early pay-off of a loan, as defined by the agreements,                                          |
| · | Excessive time to settle a loan,                                                                |
| · | Investor declines purchase, and                                                                 |
| · | Discontinued product and expired commitment.                                                    |

| · | Research reasons for rejection,                      |
|--------|------------------------------------------------------|
| · | Provide additional documents,                        |
| · | Request investor exceptions,                         |
| · | Appeal rejection decision to purchase committee, and |
| · | Commit to secondary investors.                       |

| · | For loans that have an active market, SecurityNational Mortgage uses the market price on the repurchase date.                                                                                                                                                                                                |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| · | For loans where there is no market but there is a similar product, SecurityNational Mortgage uses the market value for the similar product on the repurchase date.                                                                                                                                           |
| · | For loans where no active market exists on the repurchase date, SecurityNational Mortgage determines that the unpaid principal balance best approximates the market value on the repurchase date, after considering the fair value of the underlying real estate collateral and estimated future cash flows. |

----

----

----

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|                                                            |   | Three months ended June 30(in thousands of dollars) |   |   | Six months ended June 30(in thousands of dollars) |   |
|-----------------------------------------------------------------|--------|-----------------------------------------------------|--------|--------|---------------------------------------------------|--------|
|                                                            |   | 2012                                                |   |   | 2011                                              |   |   | % Increase (Decrease) |   |   | 2012 |   |   | 2011 |   |   | % Increase (Decrease) |   |
| Revenues from external customers                                |   |                                                |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortuary revenues                                               |   | $                                                   | 1,011  |   |                                              | $      | 1,159 |   |   |   | (13 | %) |   | $ | 2,400 |   |   | $ | 2,718 |   |   |   | (12 | %) |
| Cemetery revenues                                               |   |                                                | 1,752  |   |                                              |   | 1,732 |   |   |   | 1 | % |   |   | 3,377 |   |   |   | 3,235 |   |   |   | 4 | % |
| Realized gains on investments   and other assets |   |                                                | 0      |   |                                              |   | 887 |   |   |   | (100 | %) |   |   | 0 |   |   |   | 887 |   |   |   | (100 | %) |
| Other                                                           |   |                                                | (32    | )      |                                              |   | (55 | ) |   |   | 42 | % |   |   | (87 | ) |   |   | (84 | ) |   |   | (4 | %) |
| Total                                                           |   | $                                                   | 2,731  |   |                                              | $      | 3,723 |   |   |   | (27 | %) |   | $ | 5,690 |   |   | $ | 6,756 |   |   |   | (16 | %) |
| Earnings (Losses) before income taxes                           |   | $                                                   | (77    | )      |                                              | $      | 662 |   |   |   | (112 | %) |   | $ | 149 |   |   | $ | 814 |   |   |   | (82 | %) |

|                             |   | Three months ended June 30(in thousands of dollars) |   |   | Six months ended June 30(in thousands of dollars) |   |
|----------------------------------|--------|-----------------------------------------------------|--------|--------|---------------------------------------------------|--------|
|                             |   | 2012                                                |   |   | 2011                                              |   |   | % Increase (Decrease) |   |   | 2012 |   |   | 2011 |   |   | % Increase (Decrease) |   |
| Revenues from external customers |   |                                                |   |   |                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Insurance premiums               |   | $                                                   | 12,282 |   |                                              | $      | 11,894 |   |   |   | 3 | % |   | $ | 24,870 |   |   | $ | 24,586 |   |   |   | 1 | % |
| Net investment income            |   |                                                | 4,939  |   |                                              |   | 4,243 |   |   |   | 16 | % |   |   | 9,752 |   |   |   | 7,985 |   |   |   | 22 | % |
| Other                            |   |                                                | 261    |   |                                              |   | 462 |   |   |   | (44 | %) |   |   | 487 |   |   |   | 1,176 |   |   |   | (59 | %) |
| Total                            |   | $                                                   | 17,482 |   |                                              | $      | 16,599 |   |   |   | 5 | % |   | $ | 35,109 |   |   | $ | 33,747 |   |   |   | 4 | % |
| Intersegment revenue             |   | $                                                   | 2,082  |   |                                              | $      | 1,632 |   |   |   | 28 | % |   | $ | 4,161 |   |   | $ | 3,699 |   |   |   | 12 | % |
| Earnings before income taxes     |   | $                                                   | 2,054  |   |                                              | $      | 338 |   |   |   | 508 | % |   | $ | 2,892 |   |   | $ | 1,418 |   |   |   | 104 | % |

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

| 3.1     | Articles of Restatement of Articles of Incorporation (4)                                                               |
|---------|------------------------------------------------------------------------------------------------------------------------|
| 3.2     | Amended Bylaws (6)                                                                                                     |
| 4.1     | Specimen Class A Stock Certificate (1)                                                                                 |
| 4.2     | Specimen Class C Stock Certificate (1)                                                                                 |
| 4.3     | Specimen Preferred Stock Certificate and Certificate of Designation of Preferred Stock (1)                             |
| 10.1    | Restated and Amended Employee Stock Ownership Plan and Trust Agreement (1)                                             |
| 10.2    | 2003 Stock Option Plan (5)                                                                                             |
| 10.3    | 2006 Director Stock Option Plan (12)                                                                                   |
| 10.4    | Deferred Compensation Agreement with George R. Quist (2)                                                               |
| 10.5    | Deferred Compensation Plan (3)                                                                                         |
| 10.6    | Employment agreement with J. Lynn Beckstead, Jr. (7)                                                                   |
| 10.7    | Employment agreement with Scott M. Quist (8)                                                                           |
| 10.8    | Indemnification Agreement among SecurityNational Mortgage Company, Lehman Brothers Bank, and Aurora Loan Services (9)  |
| 10.9    | Settlement Agreement and Release with Wells Fargo Funding (10)                                                         |
| 10.10   | Coinsurance Agreement between Security National Life Insurance Company and North American Life Insurance Company (11)  |
| 31.1    | Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002          |
| 31.2    | Certification pursuant to 18 U.S.C. Section 1350, as enacted by Section 302 of the Sarbanes-Oxley Act of 2002          |
| 32.1    | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 32.2    | Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |
| 101 INS | XBRL Instance Document*                                                                                                |
| 101 SCH | XBRL Schema Document*                                                                                                  |
| 101 CAL | XBRL Calculation Linkbase Document*                                                                                    |
| 101 DEF | XBRL Definition Linkbase Document*                                                                                     |
| 101 LAB | XBRL Labels Linkbase Document*                                                                                         |
| 101 PRE | XBRL Presentation Linkbase Document*                                                                                   |

| (1)  | Incorporated by reference from Registration Statement on Form S-1, as filed on September 29, 1987                                                                     |
|------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)  | Incorporated by reference from Annual Report on Form 10-K, as filed on March 31, 1989                                                                                 |
| (3)  | Incorporated by reference from Annual Report on Form 10-K, as filed on April 3, 2002                                                                                  |
| (4)  | Incorporated by reference from Report on Form 8-K/A, as filed on January 8, 2003                                                                                      |
| (5)  | Incorporated by reference from Schedule 14A Definitive Proxy Statement, as filed on September 5, 2003, relating to the Company’s Annual Meeting of Shareholders |
| (6)  | Incorporated by reference from Report on Form 10-Q, as filed on November 14, 2003                                                                                     |
| (7)  | Incorporated by reference from Report on Form 10-K, as filed on March 30, 2004                                                                                        |
| (8)  | Incorporated by reference from Report on Form 10-Q, as filed on August 13, 2004                                                                                       |
| (9)  | Incorporated by reference from Report on Form 10-K, as filed on March 31, 2009                                                                                        |
| (10) | Incorporated by reference from Report on Form 8-K, as filed on April 12, 2011                                                                                         |
| (11) | Incorporated by reference from Report on Form 8-K/A, as filed on May 6, 2011                                                                                          |

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| Dated: August 14, 2012 |   | /s/ George R. Quist                               |
|------------------------|--------|---------------------------------------------------|
|                   |   | George R. Quist                                   |
|                   |   | Chairman of the Board and Chief Executive Officer |
|                   |   | (Principal Executive Officer)                     |
|                   |   |                                              |

| Dated: August 14, 2012 |   | /s/ Stephen M. Sill                                            |
|------------------------|--------|----------------------------------------------------------------|
|                   |   | Stephen M. Sill                                                |
|                   |   | Vice President, Treasurer and Chief Financial Officer          |
|                   |   | (Principal Financial Officer and Principal Accounting Officer) |
|                   |   |                                                           |

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