<PAGE>

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

                          FORM 10Q

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


For Quarter Ended September 30, 1996     Commission File Number: 0-9341


          SECURITY NATIONAL  FINANCIAL CORPORATION
                  Exact Name of Registrant.


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

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



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


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

                    YES  XX         NO

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


Class A Common Stock, $2.00 par value          3,306,979     
-------------------------------------      ---------------
      Title of Class                       Number of Shares
                                           Outstanding as of
                                           September 30, 1996

Class C Common Stock, $.40 par value           2,354,630     
-------------------------------------      ----------------
      Title of Class                       Number of Shares
                                           Outstanding as of
                                           September 30, 1996

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  SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                          FORM 10Q

              QUARTER ENDED SEPTEMBER 30, 1996

                      TABLE OF CONTENTS


               PART I - FINANCIAL INFORMATION


<TABLE>
<CAPTION>


                                                        Page No.
Item 1. Financial Statements
      <S>                                                 <C>
      Consolidated Statements of Earnings - Nine
      months ended September 30, 1996 and 1995, and
      three months ended September 30, 1996 and 1995 . . . 3

      Consolidated Balance Sheets - September 30,
      1996 and December 31, 1995 . . . . . . . . . . . . 4-5

      Consolidated Statements of Cash Flows -
      Nine months ended September 30, 1996 and
      September 30, 1995 . . . . . . . . . . . . . . . . 6-7

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


Item 2 Management's Discussion and Analysis. . . . . . .8-13


                 PART II - OTHER INFORMATION
  
      Other Information. . . . . . . . . . . . . . . . . .14

      Signature Page . . . . . . . . . . . . . . . . . . .15

</TABLE>

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<TABLE>
<CAPTION>

                  SECURITY NATIONAL FINANCIAL CORPORATION
                              AND SUBSIDIARIES
                    CONSOLIDATED STATEMENTS OF EARNINGS

                       Nine Months Ended               Three Months Ended
                          September 30,                   September 30, 
                   1996                 1995           1996            1995
                (Unaudited)          (Unaudited)   (Unaudited)     (Unaudited)
                -----------          -----------   -----------     -----------
<S>              <C>                 <C>           <C>            <C>
REVENUES:
Insurance premiums
  and other
  considerations  $ 4,396,863        $ 4,391,317   $ 1,424,778    $ 1,438,045
Net investment
   income           5,637,041          4,886,371     1,771,852      1,670,867
Net mortuary and
   cemetery sales   6,067,639          5,914,821     1,772,697      2,055,374
Realized gains on
   investments
   and other assets   (30,733)            51,437        (4,709)        50,893
Mortgage fee income 6,334,488          2,901,492     1,852,784      1,706,669
Other                  59,173             51,883        16,216         13,528
                  -----------        -----------   -----------    -----------
  Total Revenues  $22,464,471        $18,197,321   $ 6,833,618    $ 6,935,376 


BENEFITS AND EXPENSES:
Death benefits     $ 1,429,782       $ 1,543,761   $   407,623    $   509,077
Surrenders and other
  policy benefits    3,680,586         1,783,610     1,558,903        543,250
Increase in future
  policy benefits     (456,745)        1,170,835      (589,748)       474,894
Amortization of
   deferred policy
   acquisition costs
   and cost of
   insurance acquired  954,116           919,257       308,994         418,131
General and administr-
   ative expenses:
  Commissions        4,394,742         2,476,476     1,389,742       1,127,406
  Salaries           3,635,914         2,528,023     1,233,124         936,367
  Other              5,143,323         3,523,063     1,469,616       1,379,332
Interest expense     1,114,437           823,400       350,805         317,428
Cost of goods and
   services sold
   of the mortuaries
   and cemeteries    1,759,660         1,663,030       559,355         532,129
                   -----------       -----------   -----------     -----------
    Total benefits
      and expenses $21,655,815       $16,431,455   $ 6,688,414     $ 6,238,014
                   -----------       -----------   -----------     -----------
Earnings before
   income taxes    $   808,656       $ 1,765,866   $   145,204     $   697,362
Income tax expense    (226,764)         (477,617)      (40,719)       (203,717)
                   -----------       -----------   -----------     -----------
  Net earnings     $   581,892       $ 1,288,249   $   104,485     $   493,645
                   ===========       ===========   ===========     ===========
  Earnings per share     $0.15             $0.42         $0.03           $0.16
                         -----             -----         -----           -----
Weighted average
  outstanding
  common shares      3,835,326         3,037,224     3,829,213       3,037,224
                  ============       ===========   ===========     ===========

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

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<TABLE>
<CAPTION>

                        SECURITY NATIONAL FINANCIAL CORPORATION
                                    AND SUBSIDIARIES
                             CONSOLIDATED BALANCE SHEETS



                                 September 30, 1996             December 31,
                                    (Unaudited)                    1995    
                                 ------------------             ------------
<S>                                 <C>                          <C>
Assets:
Investments:
Fixed maturity securities
  held to maturity, at
  amortized cost                       $48,162,723                $51,143,361
Equity securities
  available for sale,
  at market                              4,231,665                  4,556,565 
Mortgage loans on real estate           13,119,701                 10,434,844 
Real estate, net of accumulated
  depreciation                           7,513,785                  7,669,296 
Policy loans                             3,052,052                  3,007,596 
Other loans                                254,037                    294,165 
Short-term investments                   3,677,918                    722,593 
                                     -------------               ------------
    Total insurance related
      investments                       80,011,881                 77,828,420 
Restricted assets of cemeteries
  and mortuaries                         3,355,562                  2,986,658 
Cash                                     2,932,751                  7,710,155 
Receivables:
  Trade contracts                        4,855,497                  5,552,888 
  Mortgage loans sold to investors      10,080,810                 19,839,657 
  Receivable from agents                   608,096                    471,937 
  Other                                    283,359                    623,628 
                                      ------------                -----------
    Total receivables                   15,827,762                 26,488,110 
  Allowance for doubtful accounts       (2,012,846)                (2,311,450)
                                       -----------                -----------
  Net receivables                       13,814,915                 24,176,660 
Land and improvements held for sale      8,358,913                  7,568,016 
Accrued investment income                1,062,773                  1,113,945 
Deferred policy acquisition costs        4,361,925                  4,509,974 
Property, plant and equipment, net       6,469,708                  6,432,615 
Cost of insurance acquired               3,815,704                  4,007,804 
Excess of cost over net assets
  of acquired subsidiaries               1,392,789                  1,461,025 
Other                                      460,684                    417,409
                                      ------------               ------------
    Total Assets                      $126,037,605               $138,212,681 
                                      ============               ============
See accompanying notes to consolidated financial statements.
</TABLE>

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<TABLE>
<CAPTION>

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



                                     September 30, 1996          December 31,
                                        (Unaudited)                 1995    
                                     -------------------        -------------
<S>                                      <C>                     <C>
Liabilities:
Future life, annuity, and other
  benefits                               $76,963,857             $76,867,685 
Line of credit of financing
  of mortgage loans                        2,206,271              14,468,354 
Bank loans payable                         6,863,545               7,485,391 
Notes and contracts payable                4,775,185               5,175,317 
Estimated future costs of
   pre-need sales                          6,034,095               6,065,875 
Payable to endowment care fund               148,810                  12,520 
Accounts payable                           1,250,438               1,193,859 
Other liabilities and accrued
   expenses                                2,197,481               2,402,842 
Income taxes                               2,848,838               2,622,245 
                                        ------------            ------------
    Total Liabilities                    103,288,521             116,294,088 


Stockholders' Equity:
  Common stock:
    Class A: $2 par value, authorized
      10,000,000 shares, issued 3,908,480
      shares in 1996 and 3,819,415 shares
      in 1995                              7,816,960               7,638,830 
    Class C: $0.40 par value, authorized
      7,500,000 shares, issued 2,380,125
      shares in 1996 and 2,388,040 shares
      in 1995                                952,050                 955,216 
                                         -----------             -----------
  Total common stock                       8,769,010               8,594,046 
  Additional paid-in capital               8,126,548               7,879,578 
  Unrealized appreciation of
    investments                              311,295                 484,629 
  Retained earnings                        7,341,864               6,759,972 
      
  Treasury stock at cost (601,501 Class
    A shares and 25,495 Class C shares
    in 1996; 600,614 Class A shares and
    25,495 Class C shares in 1995, held
    by affiliated companies)              (1,799,632)             (1,799,632)
                                        ------------            ------------
  Total Stockholders' Equity              22,749,085              21,918,593
                                        ------------            ------------
  Total Liabilities and
     Stockholders' Equity               $126,037,605            $138,212,681 
                                        ============            ============

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

<PAGE>
<TABLE>
<CAPTION>

                        SECURITY NATIONAL FINANCIAL CORPORATION
                                   AND SUBSIDIARIES
                         CONSOLIDATED STATEMENTS OF CASH FLOWS

                                         Nine Months Ended September 30,
                                            1996                 1995
                                         (Unaudited)          (Unaudited)
                                         ----------           -----------
<S>                                       <C>                 <C>
Cash flows from operating activities:
  Net earnings                             $581,892           $1,288,249 
  Adjustments to reconcile net earnings
      to net cash provided by (used in) 
    operating activities:
    Realized loss (gains) on investments
      and other assets                       24,574              (50,660)
    Depreciation                            940,854              532,832 
    Provision for losses on accounts
      and loans receivable                 (298,604)             127,867 
    Amortization of goodwill, premiums,
      and discounts                           6,002             (909,425)
    Income taxes                            226,593              477,617 
    Policy acquisition costs deferred      (613,967)            (651,117)
    Policy acquisition costs amortized      762,016              919,257 
    Cost of insurance acquired amortized    192,100              170,058 
  Change in assets and liabilities:
    Land and improvements held for sale    (790,897)          (1,666,421)
    Future life and other benefits        1,574,734            1,194,096 
    Receivables for mortgage loans sold   9,758,847          (11,741,793)
    Other operating assets and
       liabilities                        1,287,061            1,192,787 
                                       ------------         ------------
Net cash provided by (used in) operating
    activities                           13,651,205           (9,116,653)

Cash flows from investing activities:
  Securities held to maturity:
  Purchase of fixed maturity securities  (1,496,514)              --     
    Calls and maturities - fixed
      maturity securities                 4,510,053            2,307,113 
  Securities available for sale:
    Purchases - equity securities            (9,531)              --     
    Proceeds from sale of equity
       securities                           161,295               61,907 
  Purchases of short-term investments    (6,283,205)          (1,114,955)
  Sales of short-term investments         3,327,880            4,372,637 
  Purchases of restricted assets           (368,904)            (290,223)
  Mortgage, policy, and other
    loans made                           (3,698,291)          (4,467,031)
  Payments received for mortgage, policy,
    and other loans                       1,034,627            6,289,860 
  Purchases of property, plant, and
     equipment                             (752,881)          (1,513,626)
  Purchases of real estate                  (90,515)            (380,624)
  Purchase of subsidiary net
     of cash acquired                          --               (342,089)
                                       ------------           ----------
    Net cash (used in) provided by
      investing activities               (3,665,986)           4,922,969

</TABLE>

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<TABLE>
<CAPTION>

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



                                             Nine Months Ended September 30,
                                               1996                 1995
                                            (Unaudited)          (Unaudited)
                                            ----------          -----------
<S>                                       <C>                  <C>
Cash flows from financing activities:
  Annuity receipts                          2,171,786            1,618,800 
  Annuity withdrawals                      (3,650,348)          (1,426,408)
  Repayment of bank loans and
    notes and contracts payable            (1,064,467)          (1,035,347)
  Proceeds from borrowings on bank
    loans and notes and contracts payable      42,489            4,942,741 
  Net increase (decrease) in line of credit
     for financing of mortgage loans      (12,262,083)           4,036,176 
                                        -------------       --------------
  Net cash (used in) provided by 
    financing activities                  (14,762,623)           8,135,962 
                                        -------------       --------------
Net (decrease) increase in cash            (4,777,404)           3,942,278 
Cash at beginning of period                 7,710,155            2,060,876 
                                        -------------       --------------
Cash at end of period                    $  2,932,751         $  6,003,154
                                         ============         ============

</TABLE>

<PAGE>

  SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
         Notes to Consolidated Financial Statements
                 September 30, 1996 and 1995
                         (Unaudited)


1.  Basis of Presentation

The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
accounting principles for interim financial information and
with the instructions to Form 10-Q and Article 10 of
Regulation S-X.  Accordingly, they do not include all of the
information and footnotes required by generally accepted
accounting principles for complete financial statements.  In
the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair
presentation have been included.  Operating results for the
nine months ended September 30, 1996, are not necessarily
indicative of the results that may be expected for the year
ending December 31, 1996.  For further information, refer to
the consolidated financial statements and footnotes thereto
for the year ended December 31, 1995, included in the
Company's Annual Report on Form 10-K (file number 0-9341).

     MANAGEMENT'S DISCUSSION AND ANALYSIS OF OPERATIONS
                    Results of Operations

Overview

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

Three Months Ended September 30, 1996 as Compared to Three
Months Ended September 30, 1995

Total revenues have decreased by $101,000 or 1.5%, from
$6,935,000 for the three months ended September 30, 1995 as
compared to $6,834,000 for the three months ended September
30, 1996.  Contributing to this decrease in total revenues 
was a $13,000 decrease in insurance premiums and other
considerations, a $283,000 decrease in net mortuary and
cemetery sales, and a $56,000 decrease in realized gains on
investments and other assets.

Net investment income increased by $101,000, from $1,671,000
for the third quarter of 1995 to $1,772,000 for the third
quarter of 1996. This increase was attributable to a larger
investment base due to the acquisition of Civil Service
Employees Life Insurance Company ("CSE Life") and the
Company's emphasis on investing its cash and short term
investments in higher yielding investments, particularly
warehouse lending for mortgage loans.

<PAGE>

Net mortuary and cemetery sales decreased by $283,000, from
$2,055,000 for the third quarter 1995 to 1,772,000 for the
third quarter 1996.  This decrease was due to fewer pre-need
and at-need contracts written in the cemetery division and
fewer cases serviced in the Arizona mortuary division.

Mortgage fee income increased by $146,000, from $1,707,000 for
the third quarter of 1995 to $1,853,000 for the third quarter
of 1996.  This increase was the result of a strong economy and
an increased demand for housing in the intermountain area,
which created more activity for loan originations.

Total benefits and expenses were $6,238,000 for the third
quarter of 1995, which were 90% of the Company's total
revenues, as compared to $6,688,000, or 98% of the Company's
total revenues for the third quarter of 1996.

Surrenders and other policy benefits increased by $1,016,000,
from $543,000 for the third quarter of 1995 to $1,559,000 for
the third quarter of 1996.  This increase was primarily due to
the increase in the withdrawals of annuities purchased from
Capital Investors Life Insurance Company ("Capital Investors
Life") and the additional policies from the acquisition of CSE
Life at December 31, 1995.  Increase in future policy benefits
decreased by $1,065,000, from $475,000 for the third quarter
of 1995 to a negative $590,000 for the third quarter of 1996. 
This decrease was primarily due to the release of reserves
which offset the increase in withdrawals of Capital Investors
Life and the increased number of policies from the acquisition
of CSE Life.

Amortization of deferred policy acquisition costs and costs of
insurance acquired decreased by $109,000, from $418,000 for
the third quarter of 1995 to $309,000 for the third quarter of
1996.  This decrease was primarily due to flucuations in
amortization schedules as a result of actual to expected
adjustments in assumptions.

General and administrative expenses increased by $649,000,
from $3,443,000 for the third quarter of 1995 to $4,092,000
for the third quarter of 1996.  This increase was due to the
increase in commission expenses, salaries and other expenses.

Commission expenses increased by $262,000, from $1,127,000 for
the third quarter of 1995 to $1,389,000 for the third quarter
of 1996.  This increase was due to a greater number of
mortgage loans processed by Security National Mortgage
Company.  Salaries increased by $297,000, from $936,000 for
the third quarter of 1995 to $1,233,000 for the third quarter
of 1996.  This increase was attributable to the increased
number of employees resulting from the increased business
operations of Security National Mortgage Company, the
acquisition of CSE Life in December 1995, and stock options
exercised by key employees.

Other expenses have increased by $90,000, from $1,379,000  for
the third quarter of 1995 to $1,469,000 for the third quarter
of 1996.  This increase was primarily due to the increased
business operations of Security National Mortgage and the
increased maintenance costs for the Company's facilities.

Interest expenses increased by $33,000, from $317,000 for the
third quarter of 1995 to $350,000 for the third quarter of
1996.  This increase was primarily due to the greater number
of loans processed through warehouse lending at Security
National Mortgage Company and the increased indebtedness
resulting from the acquisition of CSE Life and the development
of Singing Hills Memorial Park.

<PAGE>

Cost of goods and services sold of the mortuaries and
cemeteries increased by $27,000, from $532,000 for the third
quarter of 1995 to $559,000 for the third quarter of 1996. 
This increase was due to a change in the sales mix for the
three months ended September 30, 1995, as compared to the
three months ended September 30, 1996.

Nine Months Ended September 30, 1996 as Compared to Nine
Months Ended September 30, 1995

Total revenues increased by $4,267,000, or 23.4%, from
$18,197,000 for the nine months ended September 30, 1995 as
compared to $22,464,000 for the nine months ended September
30, 1996. Contributing to this increase in total revenues was
a $751,000 increase in net investment income, a $153,000
increase in net mortuary and cemetery sales and a $3,433,000 
increase in mortgage fee income.

Net investment income increased by $751,000, from $4,886,000
for the nine months ended September 30, 1995 to $5,637,000 for
the nine months ended September 30, 1996.  This increase was
attributable to two factors.  First, the Company's emphasis on
investing its cash and short-term investments in higher
yielding investments, particularly warehouse lending for
mortgage loans.  Second, the increase was attributable to a
larger investment base due to the acquisition of CSE Life.

Net mortuary and cemetery sales increased by $512,000, from
$5,915,000 for the nine months ended September 30, 1995 to
$6,067,000 for the nine months ended September 30, 1996.  This
increase was primarily related to the mortuary division of the
Company and the acquisition of Greer-Wilson Funeral Home.  The
acquisition of Greer-Wilson Funeral Home was completed in
April 1995, thereby providing additional income for only six
months of the nine month period ending September 30, 1995 and
nine months of additional income for the period ending
September 30, 1996.

Mortgage fee income increased by $3,433,000, from $2,901,000 
for the nine months ended September 30, 1995 to $6,334,000 
for the nine months ended September 30, 1996.  This increase
was the result of the strong economy and an increased demand
for housing in the intermountain area, which created more
activity for loan originations.

Total benefits and expenses were $16,431,000 for the nine
months ended September 30, 1995, which was 90% of the
Company's total revenues, as compared to $21,656,000 for the
nine months ended September 30, 1996, or 96% of the Company's
total revenues.

Death benefits, surrenders and other policyholder benefits and
increase in future policy benefits increased in the aggregate
by $155,000, from $4,498,000 for the nine months ended
September 30, 1995 to $4,653,000 for the nine months ended
September 30, 1996.  This increase was primarily due to the
increase in the withdrawals of annuities purchased from
Capital Investors Life and the additional policies from the
acquistion of CSE Life.

Amortization of deferred policy acquisition costs increased by
$35,000, from $919,000 for the nine months ended September 30,
1995 to $954,000 for the nine months ended September 30, 1996. 
This increase was primarily due to the additional policies
from the acquisition of CSE Life.

<PAGE>

General and administrative expenses increased by $4,646,000,
from $8,528,000 for the nine months ended September 30, 1995
to $13,174,000 for the nine months ended September 30, 1996. 
This increase was due to increases in commissions, salaries
and other expenses.

Commission expenses increased by $1,918,000, from $2,476,000,
for the nine months ended September 30, 1995 to $4,394,000 for
the nine months ended September 30, 1996.  This increase was
primarily due to a greater number of mortgage loans processed
by Security National Mortgage Company.  Salaries increased by
$1,108,000, from $2,528,000 for the nine months ended
September 30, 1995 to $3,636,000 for the nine months ended
September 30, 1996.  This increase was attributable to the
increased number of employees resulting from increased
business operations of Security National Mortgage Company, 
the acquisition of CSE Life in December 1995, the additional
three months of salaries resulting from the acquisition of
Greer-Wilson Funeral Home in April 1995.  Also contributing to
this increase was the exercise of stock options by key
employees. 

Other expenses increased by $1,620,000, from $3,523,000 for
the nine months ended September 30, 1995 to $5,143,000 for the
nine months ended September 30, 1996.  This increase was
primarily due to the increased business operations of Security
National Mortgage and increased maintenance costs for the
Company's facilities

Interest expense increased by $291,000, from $823,000 for the
nine months ended September 30, 1995 to $1,114,000 for the
nine months ended September 30, 1996.  This increase was
primarily due to the increased activity in the warehouse
lending of Security National Mortgage Company and the
increased indebtedness resulting from the acquisitions of CSE
Life, Greer-Wilson Funeral Home, and Singing Hills Memorial
Park.

Cost of goods and services sold of the mortuaries and
cemeteries increased by $96,000, from $1,663,000 for the nine
months ended September 30, 1995 to $1,759,000 for the nine
months ended September 30, 1996.  This increase was consistent
with the increase in mortuary and cemetery sales.

               Liquidity and Capital Resources

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

<PAGE>

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

The Company's investment policy is to invest predominately in
fixed maturity securities and warehouse mortgage loans on a
short-term basis before selling the loans to investors in
accordance with the requirements and laws governing the life
insurance subsidiary.  Bonds owned by the insurance subsidiary
amounted to $48,163,000, at amortized cost as of September 30,
1996 compared to $51,143,000 at amortized cost as of December
31, 1995.  This represents 60% of the total insurance related
investments in 1996 as compared to 66% in 1995.  Generally all
bonds owned by the life insurance subsidiary are rated by the
National Association of Insurance Commissioners (NAIC).  Under
this rating system, there are six categories used for rating
bonds.  At September 30, 1996, 3.8% ($1,834,000) and at
December 31, 1995, 3.6% ($1,851,000) of the Company's total
investment in bonds were invested in bonds in rating
categories three through six which are considered
non-investment grade.

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

The Company is subject to risk based capital guidelines
established by statutory regulators requiring minimum capital
levels based on the perceived risk of assets, liabilities,
disintermediation, and business risk.  At December 31, 1995
and 1994, the life subsidiary exceeded the regulatory
criteria.

Stockholders' equity as a percent of assets is one measure of
capital strength.  At September 30, 1996 the Company's ratio
increased to 18% up from 16% at December 31, 1995.  The
mortgage company acts as a warehouse by financing mortgage
loans through a warehouse line of credit, and then selling
them to investors within 45 days, and repaying the debt.  This
transaction results in a receivable for mortgage loans sold to
investors which are offset by a warehouse line of credit. 
Computations without this transaction results in the Company's
debt to total assets at 10% as of September 30, 1996 and 11%
at December 31, 1995 and the Company's equity to total assets
to 20% as of September 30, 1996 and 19% at December 31, 1995.

In February 1995, the Company purchased approximately 100
acres of real property (the "property") located in San Diego,
California, approximately 35 acres of which will be used for
the development of a cemetery.  The purchase price of the
property was $1,162,000, $100,000 of which was paid in cash
and the balance of $1,062,000, together with interest thereon

<PAGE>

at the rate of 9% per annum, to be paid in twelve equal
monthly payments of $5,000, thereafter in equal monthly
payments of $10,000; however, interest does not accrue on any
part of the principal balance until February 1996.  A
principal payment of $100,000 was made in December 1995.  The
Company has obtained approval from the federal government and
the California Cemetery Board to operate a cemetery on the
property.  The development of the cemetery will be financed
internally.  Initial development of 35 acres to operate as a
cemetery is estimated to cost approximately $560,000.

In March 1995, the Company purchased 97,800 shares of common
stock of Greer-Wilson Funeral Home, Inc. ("Greer-Wilson"),
representing 97.8% of the total issued and outstanding shares
of common stock of Greer-Wilson for a total consideration of
$1,218,000, which included a note to the former owners for
$588,000.

In November 1995, the Company entered into an agreement with
Myers Mortuary for the sale of the Company's 65% interest in
Evergreen Memorial Partnership and the Company's 50% interest
in Evergreen Management Corporation.  As consideration for the
sale of these entities, Myers Mortuary paid $746,000 in
satisfaction of the indebtedness that Evergreen Memorial
Partnership owes to the Company.  Myers Mortuary has also
agreed to pay $200,000 to the Company in four equal annual
installments of $50,000, beginning in October 1996.  In
addition, Myers Mortuary will pay a $10.00 royalty to the
Company for each adult space sold in Evergreen Memorial Park
over the next ten years, beginning in January 1996.

In December 1995, the Company purchased all of the outstanding
shares of common stock of Civil Service Employees Life
Insurance Company from Civil Service Employees Insurance
Company for a total cost of $5,200,000, which included a
promissory note in the amount of $1,063,000.  Interest on the
promissory note accrues at 7% per annum.  Principal payments
are to be made in seven equal annual installments of
approximately $152,000, beginning in December 1996.  Accrued
interest will be payable annually beginning in December 1996.

At September 30, 1996, $10,259,000 of the Company's
consolidated stockholders' equity represented the statutory
stockholders' equity of the Company's insurance subsidiary. 
The life insurance subsidiary cannot pay a dividend to its
parent company without the approval of insurance regulatory
authorities.<PAGE>
Part II  Other Information:

<TABLE>
<CAPTION>

<S>       <C>
Item 1.   Legal Proceedings
          NONE

Item 2.   Changes in Securities
          NONE

Item 3.   Defaults Upon Senior Securities
          NONE

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

Item 5.   Other Information
          NONE

Item 6.   Exhibits and Reports on Form 8-K
          The Company filed a report on Form 8-K with the
          Securities and Exchange Commission on January 16,
          1996.  The report supplied information under
          Section 2 thereof, captioned "Acquisition or
          Disposition of Assets," which was related to the
          acquisition of Civil Service Employees Life
          Insurance Company.
</TABLE>

(a)(3)  Exhibits

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

Exhibit

  Table No       Document

(a)(3)  Exhibits:

                 EX-27

<PAGE>

                         SIGNATURES

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



DATED: November 14, 1996           By:   George R. Quist,
                                         -----------------------------
                                         Chairman of the Board,
                                         President and Chief Executive
                                         Officer (Principal Executive
                                         Officer)


DATED: November 14, 1996           By:   Scott M. Quist
                                         First Vice President, General
                                         Counsel and Treasurer
                                         (Principal Financial and
                                         Accounting Officer)