<PAGE>
                       UNITED STATES
            SECURITIES AND EXCHANGE COMMISSION
                     WASHINGTON, D.C.

                         FORM 10-Q

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


For Quarter Ended June 30, 1998        Commission File Number: 0-9341    
      


          SECURITY NATIONAL FINANCIAL CORPORATION
                 Exact Name of Registrant.


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

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



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


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

                   YES  XX         NO

Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.


Class A Common Stock, $2.00 par value         3,733,470    
-------------------------------------    ------------------
      Title of Class                    Number of Shares Outstanding as of
                                        June 30, 1998

Class C Common Stock, $.20 par value          5,140,623    
-------------------------------------   --------------------
      Title of Class                    Number of Shares Outstanding as of
                                        June 30, 1998
<PAGE>

 SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                         FORM 10Q

                QUARTER ENDED JUNE 30, 1998

                     TABLE OF CONTENTS


              PART I - FINANCIAL INFORMATION


<TABLE>
<CAPTION>

Item 1. Financial Statements                       Page No.

      <S>                                               <C>
      Consolidated Statements of Earnings - Six and
      three months ended June 30, 1998 and 1997 . . . . 3

      Consolidated Balance Sheets - June 30, 1998
      and December 31, 1997 . . . . . . . . . . . . . 4-5

      Consolidated Statements of Cash Flow -
      Six months ended June 30, 1998 and 1997 . . . . 6-7

      Notes to Consolidated Financial
      Statements. . . . . . . . . . . . . . . . . . . 8-9


Item 2 Management's Discussion and Analysis . . . . 10-14

                PART II - OTHER INFORMATION
  
      Other Information . . . . . . . . . . . . . . 15-16

      Signature Page. . . . . . . . . . . . . . . . . .17

</TABLE>

<PAGE>
<TABLE>
<CAPTION>
                   SECURITY NATIONAL FINANCIAL CORPORATION
                              AND SUBSIDIARIES

                     Consolidated Statements of Earnings

                                  Six Months Ended June 30, 
                                  1998                1997
Revenues:                      (Unaudited)         (Unaudited)
---------                      -----------         -----------
<S>                             <C>                <C>
Insurance premiums and
  other considerations           $ 3,014,874       $ 2,983,294 
Net investment income              3,712,179         3,466,068 
Net mortuary and cemetery sales    4,872,384         4,772,676 
Realized gains on investments
  and other assets                    98,099           269,575 
Mortgage fee income                4,183,395         2,887,947 
Other                                 38,520            22,210 
  Total revenue                   15,919,451        14,401,770 

Benefits and expenses:
Death benefits                     1,122,047         1,211,108 
Surrenders and other policy benefits 540,711           774,609 
Increase in future policy benefits 1,724,671         1,298,064 
Amortization of deferred policy
  acquisition costs and cost of
  insurance acquired                 593,054           639,355 
General and administrative expenses:
  Commissions                      3,243,517         2,397,780 
  Salaries                         2,620,264         2,435,367 
  Other                            3,272,580         2,949,368 
Interest expense                     419,729           537,851 
Cost of goods and services sold
  of the mortuaries and cemeteries 1,542,620         1,451,098 
  Total benefits and expenses     15,079,193        13,694,600 

Earnings before income taxes         840,258           707,170 
Income tax expense                  (194,331)         (165,112)

  Net earnings                   $   645,927      $    542,058 
                                 -----------      ------------

Net earnings per common share          $0.15             $0.14 
                                       =====             =====
  Weighted average 
    outstanding common shares      4,201,122         3,970,486 
                                 -----------      ------------
Net earnings per common 
  share-assuming dilution              $0.15             $0.14 
                                       =====             =====
  Weighted average outstanding
    common shares-assuming
    dilution                       4,201,122         4,002,345 
</TABLE>

See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>

                    SECURITY NATIONAL FINANCIAL CORPORATION
                               AND SUBSIDIARIES

                      Consolidated Statements of Earnings

                                   Three Months Ended June 30, 
                                      1998             1997
Revenues:                          (Unaudited)      (Unaudited)
---------                          ----------       ----------
<S>                               <C>               <C>
Insurance premiums and
  other considerations            $1,456,809        $1,510,671 
Net investment income              1,868,025         1,692,641 
Net mortuary and cemetery sales    2,433,092         2,272,313 
Realized gains on investments
  and other assets                    62,053           233,548 
Mortgage fee income                2,279,449         1,261,828 
Other                                 12,598            11,278 
                                  ----------        ----------
  Total revenue                    8,112,026         6,982,279 

Benefits and expenses:
Death benefits                       611,699           682,684 
Surrenders and other policy benefits 241,222           508,155 
Increase in future policy benefits   970,281           555,612 
Amortization of deferred policy
  acquisition costs and cost of
  insurance acquired                 296,527           324,527 
General and administrative expenses:
  Commissions                      1,688,584         1,127,487 
  Salaries                         1,356,994         1,169,323 
  Other                            1,614,454         1,437,731 
Interest expense                     234,431           260,329 
Cost of goods and services sold
  of the mortuaries and cemeteries   871,741           719,236 
  Total benefits and expenses      7,885,933         6,785,084 

Earnings before income taxes         226,093           197,195 
Income tax expense                   (59,076)          (47,818)
                                  ----------       -----------
  Net earnings                    $  167,017       $   149,377 
                                  ----------       -----------
Net earnings per common share          $0.04             $0.04 
                                       =====             =====
  Weighted average 
    outstanding common shares      4,227,691         3,970,486 
                                  ----------        ----------
Net earnings per common 
  share-assuming dilution              $0.04             $0.04 
                                       =====             =====
  Weighted average outstanding
    common shares-assuming
    dilution                       4,227,691         4,002,253 
                                  ----------        ----------
</TABLE>

See accompanying notes to consolidated financial statements.

<PAGE>
<TABLE>
<CAPTION>

                     SECURITY NATIONAL FINANCIAL CORPORATION
                               AND SUBSIDIARIES

                          Consolidated Balance Sheets


                                        June 30, 1998          December 31,
                                         (Unaudited)                1997   
                                        --------------         ------------
<S>                                    <C>                 <C>
Assets:
-------
Insurance-related investments:
Fixed maturity securities
 held to maturity, at amortized cost   $ 45,080,944         $ 49,784,898 
Equity securities available for sale,
   at market                              4,779,216            4,831,813 
Mortgage loans on real estate             9,281,050            8,307,237 
Real estate, net of
 accumulated depreciation                 7,986,419          7,559,725 
Policy loans                              2,911,154            2,882,711 
Other loans                                  73,129               84,147 
Short-term investments                    5,693,152            3,698,941 
   Total insurance-related investments   75,805,064           77,149,472 
Restricted assets of cemeteries
 and mortuaries                           4,023,830            3,889,785 
Cash                                        982,887            3,408,179 
Receivables:
 Trade contracts                          4,325,035            4,323,011 
 Mortgage loans sold to investors        16,881,944           11,398,432 
 Receivable from agents                     868,540              816,657 
 Other                                   1,937,120               364,782 
   Total receivables                     24,012,639           16,902,882 
 Allowance for doubtful accounts         (1,714,201)          (1,679,090)
 Net receivables                         22,298,438           15,223,792 
Land and improvements held for sale       8,510,946            8,466,886 
Accrued investment income                   984,356            1,001,998 
Deferred policy acquisition costs         4,614,808            4,433,841 
Property, plant and equipment, net        7,015,925            6,641,562 
Cost of insurance acquired                3,210,571            3,370,018 
Excess of cost over net assets
 of acquired subsidiaries                 1,469,697            1,554,505 
Other                                       515,493              311,841 
                                       ------------         ------------
   Total assets                        $129,432,015         $125,451,879 
                                       ============         ============
</TABLE>

See accompanying notes to consolidated financial statements.

<PAGE>
<TABLE>
<CAPTION>
                 SECURITY NATIONAL FINANCIAL CORPORATION
                           AND SUBSIDIARIES

                 Consolidated Balance Sheets (Continued)


                                    June 30, 1998           December 31,
                                     (Unaudited)                1997    
                                    -------------           ------------
<S>                                <C>                      <C>
Liabilities:
------------
Future life, annuity, and other
 policy benefits                   $ 78,776,497             $ 77,890,080 
Line of credit for financing
 of mortgage loans                    2,100,000                  100,000 
Bank loans payable                    5,849,885                6,097,351 
Notes and contracts payable           3,635,493                3,783,566 
Estimated future costs of
  pre-need sales                      6,261,463                5,994,241 
Payable to endowment care fund          169,025                  121,370 
Accounts payable                        981,649                1,204,029 
Other liabilities and accrued
   expenses                           1,914,354                1,632,897 
Income taxes                          3,426,414                3,233,415 
                                    -----------             ------------
   Total liabilities                103,114,780              100,056,949 

Commitments and contingencies

Stockholders' Equity:
Common stock:
   Class A: $2 par value, 
   authorized 10,000,000 shares,
   issued 4,393,463 shares in 
   1998 and 4,326,588 shares         8,786,926                 8,653,176 
   Class C: $0.20 par value,
   authorized 7,500,000 shares,
   issued 5,196,840 shares in
   1998 and 5,200,811 shares in
   1997                              1,039,368                 1,040,162 
Total common stock                   9,826,294                 9,693,338 
Additional paid-in capital           9,253,141                 9,133,454 
Unrealized appreciation of
 investments, net of deferred 
 taxes                                 854,675                   830,939 
Retained earnings                    8,179,185                 7,533,259 
Treasury stock at cost (659,993
   Class A shares and 56,217
   Class C shares in 1998 and
   1997 held by affiliated 
   companies)                        (1,796,060)              (1,796,060)
Total stockholders' equity           26,317,235               25,394,930 
                                   ------------             ------------
 Total liabilities and 
 stockholders' equity              $129,432,015             $125,451,879 
                                   ============             ============

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

<PAGE>
<TABLE>
<CAPTION>
                  SECURITY NATIONAL FINANCIAL CORPORATION
                            AND SUBSIDIARIES

                    Consolidated Statements of Cash Flow

                                              Six Months Ended June 30,
                                                1998             1997
                                             (Unaudited)      (Unaudited)
                                             ----------       ----------
<S>                                          <C>              <C>
Cash flows from operating
   activities:
    Net earnings                              $  645,927      $  542,058 
    Adjustments to reconcile net earnings
      to net cash (used in) provided by 
         operating activities:
       Realized gains on investments and
         other assets                            (98,099)       (269,575)
       Depreciation                              447,634         380,216 
       Provision for losses on accounts
         and loans receivable                     35,111        (159,575)
       Amortization of goodwill, premiums,
         and discounts                            58,424          (1,953)
       Provision for income taxes                193,000         163,560 
       Policy acquisition costs deferred        (614,574)       (500,047)
       Policy acquisition costs amortized        433,607         509,780 
       Cost of insurance acquired amortized      159,447         129,575 
       Change in assets and liabilities net of
       effects from purchases and disposals of
       subsidiaries:
       Land and improvements held for sale       (44,060)        (32,772)
       Future life and other benefits          1,669,577         943,023 
       Receivables for mortgage loans sold    (5,483,512)      6,448,583 
       Other operating assets and liabilities (1,185,660)        212,919 
                                             -----------      ----------
           Net cash (used in) provided by 
             operating activities             (3,783,178)      8,365,792 

Cash flows from investing activities:
    Securities held to maturity:
       Purchase - fixed maturity securities     (524,563)     (3,157,492)
       Calls and maturities - fixed
     maturity securities                       5,283,390       4,098,016 
    Securities available for sale:
       Sales - equity securities                 (15,625)       (166,695)
       Proceeds from sale of equity securities   158,527         498,934 
    Purchases of short-term investments       (5,394,210)     (3,192,862)
    Sales of short-term investments            3,400,000         648,738 
    Purchases of restricted assets              (134,045)       (241,930)
    Mortgage, policy, and other loans made    (2,913,800)       (362,837)
    Payments received for mortgage,
       policy, and other loans                 1,860,942       2,359,799 
    Purchases of property, plant, and equipment (662,030)      (146,046)
    Purchases of real estate                    (522,001)       (45,868)
           Net cash provided by
             investing activities                536,585        291,757
</TABLE>
<PAGE>
<TABLE>
<CAPTION>

                         SECURITY NATIONAL FINANCIAL CORPORATION
                                      AND SUBSIDIARIES

                    Consolidated Statements of Cash Flow (Continued)

                                             Six Months Ended June 30,
                                            1998                 1997
                                         (Unaudited)          (Unaudited)
                                         ----------           -----------
<S>                                     <C>                  <C>
Cash flows from financing activities:
    Annuity receipts                     1,386,622            1,322,402 
    Annuity withdrawals                 (2,169,782)          (2,048,870)
    Repayment of bank loans and
       notes and contracts payable        (295,539)          (1,362,749)
    Purchase of treasury stock               --                 (38,948)
    Net change in line of credit
       for financing of mortgage loans     1,900,000         (1,211,890)
    Net cash provided by (used in) 
       financing activities                821,301           (3,340,055)
Net change in cash                      (2,425,292)           5,317,494 
Cash at beginning of period              3,408,179            3,301,084 
                                      ------------           ----------
Cash at end of period                 $    982,887           $8,618,578 
                                      ============           ==========
</TABLE>

See accompanying notes to the financial statements.
<PAGE>


          SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                  Notes to Consolidated Financial Statements
                               June 30, 1998
                                (Unaudited)

1.  Basis of Presentation

The accompanying unaudited consolidated financial statements have
been prepared in accordance with generally accepted accounting
principles for interim financial information and with the
instructions to Form 10-Q and Article 10 of Regulation S-X. 
Accordingly, they do not include all of the information and
footnotes required by generally accepted accounting principles for
complete financial statements.  In the opinion of management, all
adjustments (consisting of normal recurring accruals) considered
necessary for a fair presentation have been included.  Operating
results for the six months ended June 30, 1998, are not necessarily
indicative of the results that may be expected for the year ending
December 31, 1998.  For further information, refer to the
consolidated financial statements and footnotes thereto for the year
ended December 31, 1997, included in the Company's Annual Report on
Form 10-K (file number 0-9341).

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

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

2.  Comprehensive Income

As of January 1, 1998, the Company adopted Statement 130, Reporting
Comprehensive Income.  Statement 130 establishes new rules for the
reporting and display of comprehensive income and its components;
however, the adoption of this Statement had no impact on the
Company's net income or stockholders' equity.  Statement 130
requires unrealized gains or losses on the Company's available-for-
sale securities, which prior to adoption were reported separately in
stockholders' equity, to be included in other comprehensive income. 

For the three months ended June 30, 1998 and 1997 total
comprehensive income amounted to $101,292 and $225,984,
respectively.  For the six months ended June 30, 1998 and 1997,
total comprehensive income amounted to $669,662 and $458,728,
respectively.

3.  Capital Stock

In accordance with SFAS 128, the basic and diluted earnings per
share amounts were calculated as follows:
<TABLE>
<CAPTION>
                             Six Months Ended June 30,
                          1998                   1997
                        --------               --------
<S>                     <C>                     <C>
Numerator:
    Net income          $645,927                $542,057

Denominator:
    Denominator for
      basic earnings per
      share-- weighted-
      average shares   4,201,122               3,970,486

    Effect of 
      dilutive securities:
      Employee stock
       options             --                     19,671
      Stock appreciation
       rights              --                     12,188

    Dilutive potential
      common shares        --                     31,859

    Denominator
      for diluted 
      earnings per
      share-adjusted 
      weighted-average
      shares and 
      assumed
      conversions      4,201,122               4,002,345
                       ---------              ----------
    Basic earnings 
      per share            $0.15                   $0.14
                           =====                   =====
    Diluted earnings 
      per share            $0.15                   $0.14
                           =====                   =====
</TABLE>
<TABLE>
<CAPTION>

                         Three Months Ended June 30,
                          1998                   1997
                         ------                 ------
<S>                     <C>                    <C>
Numerator:
    Net income          $167,017                $149,377

Denominator:
    Denominator for
      basic earnings per
      share-- weighted-
      average shares   4,227,691               3,970,486

    Effect of 
      dilutive securities:
      Employee stock
       options             --                     20,659
      Stock appreciation
       rights              --                     11,108

    Dilutive potential
      common shares        --                     31,767

    Denominator
      for diluted 
      earnings per
      share-adjusted 
      weighted-average
      shares and 
      assumed
      conversions      4,227,691               4,002,253
                      ----------              ----------
    Basic earnings 
      per share            $0.04                   $0.04
                           =====                   =====
    Diluted earnings 
      per share            $0.04                   $0.04
                           =====                   =====
</TABLE>

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

          MANAGEMENT'S DISCUSSION AND ANALYSIS

Overview

The Company's operations over the last several years generally
reflect three trends or events which the Company expects to
continue:  (i) increased attention to "niche" insurance products,
such as the Company's funeral plan policies, 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.

Results of Operations

Second Quarter of 1998 Compared to Second Quarter of 1997

Total revenues increased by $1,130,000, or 16.2%, to $8,112,000 for
the three months ended June 30, 1998, from $6,982,000 for the three
months ended June 30, 1997.  Contributing to this increase in total
revenues was a $1,018,000 increase in mortgage fee income, a
$175,000 increase in net investment income, and a $161,000 increase
in net mortuary and cemetery sales.  These increases were partially
offset by a $54,000 decrease in insurance premiums and other
considerations and a $171,000 decrease in realized gains on
investments and other assets.

Insurance premiums and other considerations decreased by $54,000, or 
3.6%, to $1,457,000 for the three months ended June 30, 1998, from
$1,511,000 for the comparable period in 1997.  This decrease was
primarily due to a reduction in policies in force from new business.

Net investment income increased by $175,000, or 10.4%, to $1,868,000
for the three months ended June 30, 1998, from $1,693,000 for the
comparable period in 1997.  This increase was attributable to the
Company warehousing additional mortgage loans during the second
quarter of 1998 as compared to the second quarter of 1997.

Net mortuary and cemetery sales increased by $161,000, or 7.1%, to
$2,433,000 for the three months ended June 30, 1998, from $2,272,000
for the comparable period in 1997.  This increase was primarily
related to an increase in pre-need sales which increased 45% over
the prior period. 

Mortgage fee income increased by $1,018,000, or 80.6%, to $2,280,000
for the three months ended June 30, 1998, from $1,262,000 for the
comparable period in 1997.  This increase was primarily attributable
to more loan originations during the second quarter of 1998 from the
refinancing of residential loans brought about by lower interest
rates.

Total benefits and expenses were $7,886,000, or 97.2% of total
revenues for the three months ended June 30 1998, as compared to
$6,785,000, or 97.2% of total revenues for the three months ended
June 30, 1997.

Death benefits, surrenders and other policy benefits and increase in
future policy benefits increased by $77,000, or 4.4%, to $1,823,000
for the three months ended June 30, 1998, from $1,746,000 for the
comparable period in 1997. This increase was primarily the result of
accumulative interest on policyholder funds.
 
Amortization of deferred policy acquisition costs and cost of
insurance acquired decreased by $28,000, or 8.6%, to $297,000, for
the three months ended June 30, 1998, from $325,000 for the
comparable period in 1997.  This decrease was in line with the
actuarial assumptions.

<PAGE>

General and administrative expenses increased by $926,000, or 24.8%,
to $4,660,000 for the three months ended June 30, 1998, from
$3,734,000 for the comparable period in 1997.  This increase
primarily resulted from an increase in commissions and other
expenses due to additional mortgage loan originations having been
made by the Company's mortgage subsidiary during the second quarter
of 1998.

Interest expense decreased by $26,000, or 9.9%, to $234,000 for the
three months ended June 30, 1998, from $260,000 for the comparable
period in 1997.  This decrease was primarily due to the reduction of
long-term debt.
 
Cost of goods and services sold of the mortuaries and cemeteries
increased by $153,000, or 21.2%, to $872,000 for the three months
ended June 30, 1998, from $719,000 for the comparable period in
1997.  This increase was consistent with the increase in net
mortuary and cemetery sales.

Six Months Ended June 30, 1998 Compared to Six Months Ended June 30,
1997

Total revenues increased by $1,518,000, or 10.5%, to $15,920,000 for
the six months ended June 30, 1998, from $14,402,000 for the six
months ended June 30, 1997.  Contributing to this increase in total
revenues was a $1,295,000 increase in mortgage fee income, a $32,000
increase in insurance premiums and other considerations, a $246,000
increase in net investment income, and a $100,000 increase in net
mortuary and cemetery sales.  These increases were partially offset
by a $171,000 decrease in realized gains on investments and other
assets.

Insurance premiums and other considerations increased by $32,000, or 
1.1%, to $3,015,000 for the six months ended June 30, 1998, from
$2,983,000 for the comparable period in 1997.  This increase was
primarily due to an increase in policies in force from new business.

Net investment income increased by $246,000, or 7.1%, to $3,712,000
for the six months ended June 30, 1998, from $3,466,000 for the
comparable period in 1997.  This increase was attributable to the
Company warehousing additional mortgage loans during the six months
ended June 30, 1998 as compared to the six months ended June 30,
1997.

Net mortuary and cemetery sales increased by $100,000, or 2.1%, to
$4,872,000 for the six months ended June 30, 1998, from $4,772,000
for the comparable period in 1997.  This increase is primarily
related to an increase in pre-need sales and at-need sales which
increased 22% and 3%, respectively, over the prior period.

Mortgage fee income increased by $1,295,000, or 44.9%, to $4,183,000
for the six months ended June 30, 1998, from $2,888,000 for the
comparable period in 1997.  This increase was primarily attributable
to more loan originations during the first six months of 1998 from
the refinancing of residential loans brought about by lower interest
rates.

Total benefits and expenses were $15,079,000, or 94.7% of total
revenues for the six months ended June 30 1998, as compared to
$13,695,000, or 95.1% of total revenues for the six months ended
June 30, 1997.

<PAGE>

Death benefits, surrenders and other policy benefits and increase in
future policy benefits increased by $104,000, or 3.2%, to $3,388,000
for the six months ended June 30, 1998, from $3,284,000 for the
comparable period in 1997. This increase was primarily the result of
accumulative interest on policyholder funds.

Amortization of deferred policy acquisition costs and cost of
insurance acquired decreased by $46,000, or 7.2%, to $593,000, for
the six months ended June 30, 1998, from $639,000 for the comparable
period in 1997.  This decrease was in line with the actuarial
assumptions.

General and administrative expenses increased by $1,354,000, or
17.4%, to $9,137,000 for the six months ended June 30, 1998, from
$7,783,000 for the comparable period in 1997.  This increase
primarily resulted from an increase in commissions and other
expenses due to additional mortgage loan originations having been
made by the Company's mortgage subsidiary during the six months
ended June 30, 1998.

Interest expense decreased by $118,000, or 22.0%, to $420,000 for
the six months ended June 30, 1998, from $538,000 for the comparable
period in 1997.  This decrease was primarily due to the reduction of
long-term debt.
 
Cost of goods and services sold of the mortuaries and cemeteries
increased by $92,000, or 6.3%, to $1,543,000 for the six months
ended June 30, 1998, from $1,451,000 for the comparable period in
1997.  This increase was consistent with the increase in net
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 operating
expenses.

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

The Company's investment policy is to invest predominantly in fixed
maturity securities, mortgage loans, and warehouse mortgage loans on
a short-term basis before selling the loans to investors in
accordance with the requirements and laws governing the life
insurance subsidiary.  Bonds owned by the life insurance subsidiary
amounted to $44,993,000 at amortized cost as of June 30, 1998
compared to $49,697,000 at amortized cost as of December 31, 1997.
This represents 61% and 64% of the total insurance-related
investments as of June 30, 1998 and December 31, 1997, respectively. 
Generally, all bonds owned by the life insurance subsidiary are
rated by the National Association of Insurance Commissioners.  Under
this rating system, there are six categories used for rating bonds. 
At June 30, 1998, 4.5% ($2,018,000) and at December 31, 1997, 4.1%
($2,018,000) of the Company's total investment in bonds were
invested in bonds in rating categories three through six, which are
considered non-investment grade.

<PAGE>

The Company intends 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 June 30, 1998 and December 31, 1997, the life
insurance subsidiary exceeded the regulatory criteria.

The Company's total capitalization of stockholders' equity and bank
debt and notes payable was $35,803,000 as of June 30, 1998 as
compared to $35,276,000 as of December 31, 1997.  Stockholders'
equity as a percent of capitalization increased to 74% as of June
30, 1998 from 72% as of December 31, 1997 and as a percent of assets
was 20% for both periods.

Lapse rates measure the amount of insurance terminated during a
particular period.  The Company's lapse rate for life insurance in
1997 was 11.7% as compared to a rate of 12.0% for 1996.  The 1998
lapse rate is approximately the same as 1997.

At June 30, 1998, $11,948,000 of the Company's consolidated
stockholders' equity represents the statutory stockholders' equity
of the Company's life insurance subsidiary.  The life insurance
subsidiary cannot pay a dividend to its parent company without the
approval of insurance regulatory authorities.

Acquisitions

On April 27, 1998, the Company entered into an Acquisition Agreement
(the "Agreement") with Consolidare Enterprises, Inc., a Florida
corporation, ("Consolidare"), and certain shareholders of
Consolidare for the purchase of all of the outstanding shares of
common stock of Consolidare.  Consolidare owns approximately 57.4%
of the outstanding shares of common stock of Southern Security Life
Insurance Company, a Florida corporation ("SSLIC"), and all of the
outstanding shares of stock of Insuradyne Corp., a Florida
corporation ("Insuradyne").  SSLIC is a Florida domiciled insurance
company with total assets of approximately $82.1 million.  SSLIC is
currently licensed to transact business in 14 states.  SSLIC's total
revenues for the year ended December 31, 1997 were $11,695,756. 
SSLIC had a net income of $195,000 for fiscal 1997.

As consideration for the purchase of the shares of Consolidare, the
Company will pay to the holders of Consolidare common stock an
aggregate of $11,356,400 plus an amount equal to the current assets
of Consolidare as of the closing date.  For purposes of the purchase
consideration, current assets of Consolidare are defined as cash and
cash equivalents (with interest earned through the closing date) and
accrued commission due to Insuradyne from SSLIC.  To pay the
purchase consideration, the Company intends to obtain approximately
$6,500,000 from bank financing, with the balance of approximately
$4,856,400 to be obtained from funds currently held by the Company. 
In addition to the purchase consideration, the Company is required
to cause SSLIC to pay, on the closing date, $1,050,000 to George
Pihakis, who is currently President and Chief Executive Officer of
SSLIC, as a lump sum settlement of the executive compensation
agreement between SSLIC and Mr. Pihakis.

<PAGE>

The closing of the Agreement is contingent upon regulatory
approvals, including the approval of the Florida Department of
Insurance and the Utah Insurance Department, compliance or waiver of
compliance under the Hart-Scott-Rodino Antitrust Improvements Act of
1976, approval of the Agreement by the affirmative vote of a
majority of the Consolidare shareholders, with no Consolidare
shareholders exercising their rights as dissenting shareholders
under Section 607.1320 of the Florida statutes, as well as the
satisfactory performance of certain covenants and the accuracy of
the parties' respective representations and warranties at closing. 
Following the closing of the Agreement, it is the intention of the
Company to merge a newly formed wholly-owned subsidiary of Security
National Life Insurance Company into Consolidare, with the result
that Security National Life Insurance Company will then own 57.4% of
the outstanding shares of common stock of SSLIC.  The Company
further intends to continue to operate SSLIC as a Florida domiciled
insurance company.

Year 2000 Issues

The Company is aware of the issues associated with the programming
code in existing computer systems as the millennium ("Year 2000")
approaches. The Year 2000 problem is pervasive and complex as
virtually every computer operation will be affected in some way by
the rollover of the two digit year value to 00. The issue is whether
computer systems will properly recognize data sensitive information
when the year changes to 2000.  Systems that do not properly
recognize such information could generate erroneous data or cause a
system to fail.

The Company's systems, which are presently in use, have been
purchased from third party vendors.  The Company is in the process of
converting to the latest versions for these systems which are Year
2000 compliant ("Version 2000").  The Company plans to have the
Version 2000 installed and in use for its life insurance subsidiary
in the third quarter of 1998 and the Version 2000 installed and in
use for its cemetery and mortuary subsidiaries in the first quarter
of 1999.  The mortgage subsidiary is currently using a Version 2000
system.  The total cost for the Version 2000 systems is approximately
$50,000, of which $40,000 has been spent as of June 30, 1998.

Once installed the Company believes that the Year 2000 problem will
not pose significiant operational problems for the Company.  However,
if such conversions are not completed timely, the Year 2000 problem
may have a material impact on the operations of the Company.  Also,
the Company is in the process of confirming with its major vendors
and suppliers to determine their readiness for the Year 2000.

<PAGE>
<TABLE>
<CAPTION>

                    Part II  Other Information:

<S>  <C>  <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

  (a)     Exhibits

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

   4. A.   Specimen Class A Stock Certificate (1)
      B.   Specimen Class C Stock Certificate (1)
      C.   Specimen Preferred Stock Certificate and Certificate of
           Designation of Preferred Stock (1)
  10. A.   Restated and Amended Employee Stock Ownership Plan and
           Trust Agreement (1)
      B.   Deferred Compensation Agreement with George R. Quist (2)
      C.   1993 Stock Option Plan (3)
      D.   Promissory Note with Key Bank of Utah (4)
      E.   Loan and Security Agreement with Key Bank of Utah (4)
      F.   General Pledge Agreement with Key Bank of Utah (4)
      G.   Deferred Compensation Agreement with William C. Sargent (9)
      H.   Note Secured by Purchase Price Deed of Trust and Assignment
           of Rents with the Carter Family Trust and the Leonard M.
           Smith Family Trust (5)
      I.   Deed of Trust and Assignment of Rents with the Carter
           Family Trust and the Leonard M. Smith Family Trust (5)
      J.   Promissory Note with Page and Patricia Greer (6)
      K.   Pledge Agreement with Page and Patricia Greer (6)
      L.   Stock Purchase Agreement with Civil Service Life Insurance
           Company and Civil Service Employees Insurance Company (7)
      M.   Promissory Note with Civil Service Employees Insurance
           Company (7)
      N.   Articles of Merger of Civil Service Employees Life
           Insurance Company into Capital Investors Life Insurance
           Company (7)
      O.   Agreement and Plan of Merger of Civil Service Employees
           Life Insurance Company into Capital Investors Life
           Insurance Company (7)
      P.   Employment Agreement with Scott M. Quist. (9)
      Q.   Acquisition Agreement with Consolidare 
           Enterprises, Inc.(10)
      -------------------------------------                                          
   (1)     Incorporated by reference from Registration Statement on
           Form S-1, as filed on June 29, 1987.
   (2)     Incorporated by reference from Annual Report on Form 10-K,
           as filed on March 31, 1989.
   (3)     Incorporated by reference from Annual Report on Form 10-K,
           as filed on March 31, 1994.
   (4)     Incorporated by reference from Report on Form 8-K, as filed
           on February 24, 1995.
   (5)     Incorporated by reference from Annual Report on Form 10K,
           as filed on March 31, 1995.
   (6)     Incorporated by reference from Report on Form 8-K, as filed
           on May 1, 1995.
   (7)     Incorporated by reference from Report on Form 8-K, as filed
           on January 16, 1996.
   (8)     Incorporated by reference from Annual Report on Form 10-K,
           as filed on March 31, 1997.
   (9)     Incorporated by reference from Annual Report on Form 10-K,
           as filed on March 31, 1998.
   (10)    Incorporated by reference from Report on Form 8-K, as filed
           on May 12, 1998.

   27.     Financial Data Schedule

(b) Reports on Form 8-K

      The Company filed a report on Form 8-K with the Securities and
      Exchange Commission on May 12, 1998.  The report supplied
      information under Item 2, thereof, captioned "Acquisition or
      Disposition of Assets", relating to the acquisition of
      Consolidare Enterprises, Inc.
</TABLE>

<PAGE>

                            SIGNATURES

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


                         REGISTRANT
           SECURITY NATIONAL FINANCIAL CORPORATION
                         Registrant



DATED: August 14, 1998        By:   George R. Quist,
                                    -----------------
                                    Chairman of the Board,
                                    President and Chief
                                    Executive Officer
                                    (Principal Executive
                                    Officer)


DATED: August 14, 1998        By:   Scott M. Quist
                                    ---------------
                                    First Vice President,
                                    General Counsel and
                                    Treasurer (Principal
                                    Financial and Accounting
                                    Officer)