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, 2001             Commission File Number: 0-9341
-------------------------------             ------------------------------




                     SECURITY NATIONAL FINANCIAL CORPORATION
                            Exact Name of Registrant.




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



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




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




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

                              YES  XX         NO
                                  ----


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



Class A Common Stock, $2.00 par value                3,874,566
-------------------------------------     ---------------------------------
         Title of Class                   Number of Shares Outstanding as of
                                                   June 30, 2001


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


<PAGE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                                    FORM 10Q

                           QUARTER ENDED JUNE 30, 2001

                                TABLE OF CONTENTS


                         PART I - FINANCIAL INFORMATION



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

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

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

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

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


Item 2   Management's Discussion and Analysis........................10-13
------

Item 3   Quantitative and Qualitative Disclosure of Market Risk......13
------

                           PART II - OTHER INFORMATION

         Other Information...........................................13-14

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

                                        2

<PAGE>
<TABLE>
<CAPTION>



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

                                                 Six Months Ended              Three Months Ended
                                                     June 30,                       June 30,
Revenues:                                    2001            2000            2001            2000
--------                                     ----            ----            ----            ----

                                     <c>               <c>             <c>             <c>
Insurance premiums and
   other considerations                   $6,583,184      $6,599,889      $3,102,047      $3,206,115
Net investment income                      6,559,980       5,894,207       3,410,622       3,090,458
Net mortuary and cemetery sales            6,370,439       5,186,292       3,362,310       2,491,271
Realized gains on investments
   and other assets                            3,986          31,567            (111)         (1,158)
Mortgage fee income                       17,189,891      11,108,165       8,569,183       6,466,954
Other                                         54,998          66,689          23,674          14,203
                                        ------------    ------------    ------------    ------------
   Total revenues                         36,762,478      28,886,809      18,467,725      15,267,843

Benefits and expenses:
                                                                                        ------------
Death benefits                             2,790,758       2,484,425       1,242,464       1,294,389
Surrenders and other policy benefits         836,554       1,362,206         539,955         768,130
Increase in future policy benefits         2,543,794       2,210,335       1,292,635         862,627
Amortization of deferred policy
   acquisition costs and cost of
   insurance acquired                      1,948,946       2,317,592         871,209       1,196,563
General and administrative expenses:
   Commissions                            13,259,123       8,939,115       6,721,924       5,168,667
   Salaries                                4,240,182       3,933,161       2,203,522       1,993,311
   Other                                   5,968,907       4,637,745       2,931,753       2,406,049
Interest expense                           1,616,682         894,114         909,129         561,276
Cost of goods and services sold
  of the mortuaries and cemeteries         2,253,492       1,660,660       1,171,740         814,451
                                        ------------    ------------    ------------    ------------
   Total benefits and expenses            35,468,438      28,439,353      17,884,331      15,065,463

Earnings before income taxes               1,294,040         447,456         583,394         202,380
Income tax expense                          (354,660)       (110,316)       (164,504)        (51,254)
Minority interest (income)
   loss of subsidiary                         35,186         (30,660)         26,683         (11,852)
                                        ------------    ------------    ------------    ------------

      Net earnings                          $974,566        $306,480        $445,573        $139,274
                                        ============    ============    ============    ============

Net earnings per common share                  $0.22           $0.07           $0.10            0.03
                                        ============    ============    ============    ============
   Weighted average outstanding
      common shares                        4,450,839       4,307,694       4,450,839       4,238,724

Net earnings per common
   share-assuming dilution                     $0.22           $0.07           $0.10           $0.03
                                        ============    ============    ============    ============

   Weighted average outstanding
      common shares assuming-dilution      4,451,094       4,356,876       4,451,048       4,259,794

</TABLE>

See accompanying notes to consolidated financial statements.

                                        3

<PAGE>



                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET



                                          June 30, 2001     December 31,
                                           (Unaudited)         2000
                                          --------------    -----------
Assets:
Insurance-related investments:
Fixed maturity securities held
   to maturity, at amortized cost         $31,728,604      $39,384,168
Fixed maturity securities available
   for sale, at market                     22,798,901       23,504,989
Equity securities available for sale,
   at market                                2,795,171        2,774,077
Mortgage loans on real estate              17,757,621       17,435,178
Real estate, net of accumulated
   depreciation                             8,414,590        8,564,395
Policy, student and other loans            11,257,971       11,277,742
Short-term investments                      2,468,829        1,027,927
                                        -------------    -------------
      Total insurance-related
         investments                       97,221,687      103,968,476
Restricted assets
   of cemeteries and mortuaries             5,136,872        4,841,819
Cash                                        6,796,966       11,275,030
Receivables:
   Trade contracts                          6,485,450        5,342,380
   Mortgage loans sold to investors        38,536,362       26,886,162
   Receivable from agents                   2,132,285        2,225,784
   Receivable from officers                   107,600          111,500
   Other                                    4,005,404        3,503,320
                                        -------------    -------------
      Total receivables                    51,267,101       38,069,146
   Allowance for doubtful accounts         (1,666,120)      (1,656,223)
                                        -------------    -------------
   Net receivables                         49,600,981       36,412,923
Policyholder accounts on deposit
   with reinsurer                           7,325,828        7,434,750
Land and improvements held for sale         8,385,195        8,485,523
Accrued investment income                   1,262,840        1,302,552
Deferred policy acquisition costs          12,353,769       12,043,527
Property, plant and equipment, net         10,761,305       10,824,700
Cost of insurance acquired                  8,027,429        8,729,264
Excess of cost over net assets
   of acquired subsidiaries                 1,117,812        1,172,599
Other                                         603,863          695,683
                                        -------------    -------------
      Total assets                       $208,594,547     $207,186,846
                                        =============    =============


















See accompanying notes to consolidated financial statements.

                                        4

<PAGE>



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


                                           June 30, 2001      December 31,
                                            (Unaudited)          2000
                                          --------------     -----------
Liabilities:
------------
Future life, annuity, and other
   policy benefits                         $140,357,410     $140,000,344
Unearned premium reserve                      1,749,899        1,754,980
Bank loans payable                            8,865,526        9,805,118
Notes and contracts payable                   3,952,519        4,240,830
Estimated future costs of
   pre-need sales                             7,748,824        7,119,544
Accounts payable                              1,054,486        1,242,407
Funds held under reinsurance
   treaties                                   1,391,740        1,417,216
Other liabilities and
   accrued expenses                           4,783,818        4,115,920
Income taxes                                  6,644,649        6,124,512
                                          -------------    -------------
      Total liabilities                     176,548,871      175,820,871

Minority interest                             4,115,061        4,624,614

Stockholders' Equity:
--------------------
Common stock:
      Class A: $2 par value,
         authorized 10,000,000
         shares, issued 5,107,630
         shares in 2001 and 5,107,631
         shares in 2000                      10,215,260       10,215,262
      Class C: $0.20 par value,
         authorized 7,500,000 shares,
         issued 5,827,805 shares in
         2001 and 2000                        1,165,561        1,165,561
                                          -------------    -------------
Total common stock                           11,380,821       11,380,823
Additional paid-in capital                   10,054,714       10,054,714
Accumulated other comprehensive
   income, net of deferred taxes              1,051,441          836,751
Retained earnings                             8,805,872        7,831,306
Treasury stock at cost (1,233,064
      Class A shares and 65,078
      Class C shares in 2001 and 2000 held
      by affiliated companies)               (3,362,233)      (3,362,233)
                                          -------------    -------------
Total stockholders' equity                   27,930,615       26,741,361
                                          -------------    -------------
   Total liabilities and
      stockholders' equity                 $208,594,547     $207,186,846
                                          =============    =============













See accompanying notes to consolidated financial statements.

                                        5

<PAGE>



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



                                                  Six Months Ended June 30,
                                              2001                       2000
                                              ----                       ----
Cash flows from operating activities:
      Net cash provided by (used in)
      operating activities                 $(6,249,704)          $2,349,410
                                           ------------         ------------

Cash flows from investing activities:
    Securities held to maturity:
      Purchase - fixed maturity securities     (402,995)          (4,798,597)
      Calls and maturities - fixed
        maturity securities                   8,094,041            2,520,856
   Securities available for sale:
      Purchases - equity securities              --                  (92,563)
      Sales - equity securities                  11,381               71,913
      Calls and maturities - fixed
         maturity securities                  1,064,816            1,214,748
   Purchases of short-term investments      (10,015,902)          (2,917,187)
   Sales of short-term investments            8,575,000            3,699,117
   Purchases of restricted assets              (295,053)            (301,907)
   Mortgage, policy, and other loans made    (2,161,454)          (2,244,580)
   Payments received for mortgage,
     policy, and other loans                  1,851,468            3,523,682
   Purchases of property, plant,
     and equipment                             (431,896)            (446,141)
   Purchases of real estate                     (28,085)            (808,421)
   Disposal of property, plant
      and equipment                                --                   (240)
                                           ------------         ------------

         Net cash provided by
            (used in) investing activities    6,261,321             (579,320)
                                           ------------         ------------

Cash flows from financing activities:
   Annuity receipts                           3,540,035            4,643,939
   Annuity withdrawals                       (6,801,813)          (6,011,888)
   Repayment of bank loans and
      notes and contracts payable            (1,227,903)            (798,185)
   Net change in line of credit
      for financing of mortgage loans            --               (6,387,023)
   Purchase of treasury stock                    --                 (815,121)
                                           ------------         ------------
   Net cash (used in) provided by
      financing activities                   (4,489,681)          (9,368,278)
                                           ------------         ------------
Net change in cash                           (4,478,064)          (7,598,188)

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

Cash at end of period                       $ 6,796,966          $ 4,824,676
                                           ============         ============















See accompanying notes to consolidated financial statements.

                                        6

<PAGE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 30, 2001
                                   (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, 2001, are not
necessarily  indicative  of the results that may be expected for the year ending
December 31, 2001. For further information,  refer to the consolidated financial
statements and footnotes thereto for the year ended December 31, 2000,  included
in the Company's Annual Report on Form 10-K (file number 0-9341).

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

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

2.   Comprehensive Income

For the six months  ended June 30,  2001 and 2000,  total  comprehensive  income
amounted to $1,189,256  and $165,373,  respectively.  For the three months ended
June 30, 2001,  total  comprehensive  income  amounted to $526,238 and $137,002,
respectively.

3.   Capital Stock

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

                                                   Six Months Ended June 30,
                                                     2001                2000
                                                     ----                ----
Numerator:
      Net income                                   $974,566        $306,480
                                                 ==========      ==========

Denominator:
      Denominator for basic
        earnings per share--
        weighted-average shares                   4,450,839       4,307,694

      Effect of dilutive securities:
        Employee stock options                          255          49,182
        Stock appreciation rights                        --              --
                                                 ----------      ----------

      Dilutive potential
        common shares                                   255          49,182
                                                 ----------      ----------

      Denominator for diluted earnings
        per share-adjusted weighted-
        average shares and assumed
        conversions                               4,451,094       4,356,876
                                                 ==========      ==========

      Basic earnings per share                        $0.22           $0.07
                                                 ==========      ==========

      Diluted earnings per share                      $0.22           $0.07
                                                 ==========      ==========

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

                                        7

<PAGE>



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



3.  Capital Stock

                                                Three Months Ended June 30,
                                               2001                    2000
                                               ----                    ----
Numerator:
      Net income                              $445,573        $139,274
                                            ==========      ==========

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

      Effect of dilutive securities:
        Employee stock options                     209          21,070
        Stock appreciation rights                   --              --
                                            ----------      ----------

      Dilutive potential
        common shares                              209          21,070
                                            ----------      ----------

      Denominator for diluted earnings
        per share-adjusted weighted-
        average shares and assumed
        conversions                          4,451,048       4,259,794
                                            ==========      ==========

      Basic earnings per share                   $0.10           $0.03
                                            ==========      ==========

      Diluted earnings per share                 $0.10           $0.03
                                            ==========      ==========

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

                                        8

<PAGE>
<TABLE>
<CAPTION>



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



4.  Business Segment

                                         Life       Cemetery/                                                    Reconciling
                                       Insurance    Mortuary        Mortgage        Corporate        Items      Consolidated
                                       ---------    --------        --------        ---------        -----      ------------
<S>                                 <C>            <C>              <C>             <C>         <C>               <C>

For the Six Months Ended
   June 30, 2001
   Revenues from
      external customers             $10,330,177    $6,870,769      $19,561,393          $139    $      --          $36,762,478

   Intersegment revenues               1,910,525         --               --        1,981,178      (3,891,703)            --

   Segment profit                       (120,150)      155,876          562,735       695,579              --         1,294,040

   Identifiable assets               196,522,979    36,555,814        4,892,580     2,443,800     (31,820,626)      208,594,547

For the Six Months Ended
   June 30, 2000
   Revenues from external
      customers                      $10,782,158    $5,560,823      $12,543,770           $58     $     --          $28,886,809

   Intersegment revenues               1,501,044         --               --        1,932,619      (3,433,663)            --

   Segment profit                        114,344      (207,107)        (130,988)      671,207           --              447,456

   Identifiable assets               195,450,371    34,629,760        3,287,654     2,863,827     (30,423,881)      205,807,731

For the Three Months Ended
   June 30, 2001
   Revenues from
      external customers              $4,986,436    $3,615,367       $9,865,804          $118     $     --          $18,467,725

   Intersegment revenues                 941,771         --               --        1,014,430      (1,956,201)            --

   Segment profit                       (126,638)      (13,964)         348,194       375,802           --              583,394

For the Three Months Ended
   June 30, 2000
   Revenues from external
      customers                       $5,228,653    $2,683,449       $7,355,704           $37     $     --          $15,267,843

   Intersegment revenues                 804,245         --               --          970,193      (1,774,438)            --

   Segment profit                        137,549      (271,551)         (44,644)      381,026           --              202,380

</TABLE>

                                        9

<PAGE>



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


Item 2.  Management's Discussion and Analysis

Overview

The  Company's  operations  over the last several  years  generally  reflect six
trends or events which the Company expects to continue:  (i) increased attention
to "niche" insurance  products,  such as the Company's funeral plan policies and
interest  sensitive  products;  (ii) emphasis on cemetery and mortuary business;
and (iii)  capitalizing  on lower interest rates by originating  and refinancing
mortgage loans.

Results of Operations

Six Months Ended June 30, 2001 Compared to Six Months Ended June 30, 2000

Total revenues  increased by $7,876,000,  or 27.3%,  to $36,762,000  for the six
months ended June 30, 2001,  from  $28,887,000 for the six months ended June 30,
2000.  Contributing to this increase in total revenues was a $6,082,000 increase
in mortgage fee income,  a $666,000  increase in net  investment  income,  and a
$1,184,000 increase in net mortuary and cemetery sales.

Insurance  premiums and other  considerations  decreased by $17,000,  or .3%, to
$6,583,000  for the six months  ended June 30,  2001,  from  $6,600,000  for the
comparable  period in 2000. This decrease was primarily due to the adjustment of
the  amortization  rate of unearned  premium  reserve to the  Company's  current
actuarial assumptions.

Net investment income increased by $666,000, or 11.3%, to $6,560,000 for the six
months ended June 30, 2001, from  $5,894,000 for the comparable  period in 2000.
This increase was primarily  attributable  to  additional  interest  earned as a
result of a greater number of loan originations during the six months of 2001.

Net mortuary and cemetery sales increased by $1,184,000, or 22.8%, to $6,370,000
for the six months  ended June 30,  2001,  from  $5,186,000  for the  comparable
period in 2000. This increase was primarily due to additional  pre-need cemetery
sales.

Mortgage fee income  increased by $6,082,000,  or 54.8%,  to $17,190,000 for the
six months ended June 30, 2001, from  $11,108,000  for the comparable  period in
2000.  This  increase was  primarily  attributable  to a greater  number of loan
originations during the six months of 2001 due to lower interest rates resulting
in more borrowers refinancing their mortgage loans.

Total benefits and expenses were  $35,468,000,  or 96.5%,  of total revenues for
the six months ended June 30, 2001,  as compared to  $28,439,000,  or 98.5%,  of
total revenues for the comparable period in 2000.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy  benefits  increased by an aggregate of $114,000,  or 1.9%, to $6,171,000
for the six months  ended June 30,  2001,  from  $6,057,000  for the  comparable
period in 2000.  This  increase was primarily the result of an increase in death
claims.

Amortization of deferred policy acquisition costs and cost of insurance acquired
decreased by $369,000, or 15.9%, to $1,949,000 for the six months ended June 30,
2001,  from  $2,318,000 for the comparable  period in 2000. This decrease was in
line with actuarial assumptions.

                                       10

<PAGE>



General and  administrative  expenses  increased  by  $5,958,000,  or 34.0%,  to
$23,468,000  for the six months ended June 30, 2001,  from  $17,510,000  for the
comparable period in 2000. This increase  primarily resulted from an increase in
commissions  and other  expenses due to additional  mortgage  loan  originations
having been made by the Company's  mortgage  subsidiary during the six months of
2001.

Interest  expense  increased by $723,000,  or 80.8%,  to $1,617,000  for the six
months ended June 30, 2001,  from  $894,000 for the  comparable  period in 2000.
This increase was primarily due to additional warehouse lines of credit required
for  the  additional  mortgage  loan  originations  by  the  Company's  mortgage
subsidiary.

Cost of goods and services sold of the mortuaries  and  cemeteries  increased by
$603,000,  or 36.3%,  to $2,263,000 for the six months ended June 30, 2001, from
$1,660,000 for the comparable period in 2000. This increase was primarily due to
additional pre-need cemetery sales.

Second Quarter of 2001 Compared to Second Quarter of 2000

Total revenues  increased by $3,200,000,  or 21.0%, to $18,468,000 for the three
months ended June 30, 2001, from $15,268,000 for the three months ended June 30,
2000.  Contributing to this increase in total revenues was a $2,102,000 increase
in mortgage  fee income,  a $320,000  increase in net  investment  income and an
$871,000 increase in net mortuary and cemetery sales.

Insurance premiums and other considerations  decreased by $104,000,  or 3.2%, to
$3,102,000  for the three months ended June 30, 2001,  from  $3,206,000  for the
comparable  period in 2000. This decrease was primarily due to the adjustment of
the  amortization  rate of unearned  premium  reserve to the  Company's  current
actuarial assumptions.

Net investment  income  increased by $320,000,  or 10.4%,  to $3,411,000 for the
three months ended June 30, 2001, from  $3,091,000 for the comparable  period in
2000. This increase was primarily  attributable to additional interest earned as
a result of a greater number of loan  originations  during the second quarter of
2001.

Net mortuary and cemetery sales  increased by $871,000,  or 35.0%, to $3,362,000
for the three months ended June 30, 2001,  from  $2,491,000  for the  comparable
period in 2000. This increase is primarily due to additional  pre-need  cemetery
sales.

Mortgage fee income  increased by  $2,102,000,  or 32.5%,  to $8,569,000 for the
three months ended June 30, 2001, from  $6,467,000 for the comparable  period in
2000.  This  increase was  primarily  attributable  to a greater  number of loan
originations  during the second  quarter of 2001,  due to lower  interest  rates
resulting in more borrowers refinancing their mortgage loans.

Total benefits and expenses were  $17,884,000,  or 96.8%,  of total revenues for
the three months ended June 30 2001, as compared to  $15,065,000,  or 98.7%,  of
total revenues for the comparable period in 2000.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy  benefits  increased by an aggregate of $150,000,  or 5.1%, to $3,075,000
for the three months ended June 30, 2001,  from  $2,925,000  for the  comparable
period in 2000.  This  increase  was  primarily  the  result of an  increase  in
interest credited on policyholder account balances.

Amortization of deferred policy acquisition costs and cost of insurance acquired
decreased by $325,000 or 27.2, to $871,000,  for the three months ended June 30,
2001,  from  $1,196,000 for the comparable  period in 2000. This decrease was in
line with actuarial assumptions.

General  and  administrative  expenses  increased  by  $2,289,000  or 23.9%,  to
$11,857,000  for the three months ended June 30, 2001,  from  $9,568,000 for the
comparable period in 2000. This increase  primarily resulted from an increase in
commissions  and other  expenses due to additional  mortgage  loan  originations
having been made by the Company's mortgage  subsidiary during the second quarter
of 2001.

                                       11

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Interest  expense  increased  by $348,000,  or 62.0%,  to $909,000 for the three
months ended June 30, 2001,  from  $561,000 for the  comparable  period in 2000.
This increase was primarily due to additional warehouse lines of credit required
for  the  additional  mortgage  loan  originations  by  the  Company's  mortgage
subsidiary.

Cost of mortuaries and cemeteries goods and services sold increased by $357,000,
or 43.9%,  to $1,172,000 for the three months ended June 30, 2001, from $814,000
for the comparable period in 2000. This increase was primarily due to additional
pre-need cemetery sales.

Liquidity and Capital Resources

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

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

The Company's  investment  policy is to invest  predominantly  in fixed maturity
securities,  mortgage loans, and warehouse  mortgage loans on a short-term basis
before selling the loans to investors in accordance  with the  requirements  and
laws  governing  the  life  insurance  subsidiaries.  Bonds  owned  by the  life
insurance  subsidiaries amounted to $54,528,000 as of June 30, 2001, compared to
$62,889,000  as of December 31, 2000.  This  represents 56% and 60% of the total
insurance-related  investments  as of June 30,  2001,  and  December  31,  2000,
respectively.  Generally, all bonds owned by the life insurance subsidiaries are
rated by the National Association of Insurance Commissioners.  Under this rating
system,  there are six categories  used for rating bonds. At June 30, 2001, .75%
($408,000)  and at December 31, 2000,  .68%  ($429,000) of the  Company's  total
investment  in bonds were invested in bonds in rating  categories  three through
six, which are considered non-investment grade.

The Company has  classified  certain of its fixed income  securities,  including
high-yield  securities,  in its  portfolio  as  available  for  sale,  with  the
remainder  classified as held to maturity.  However,  in accordance with Company
policy,  any such securities  purchased in the future will be classified as held
to maturity.  Business conditions,  however, may develop in the future which may
indicate a need for a higher level of liquidity in the investment portfolio.  In
that event the  Company  believes  it could  sell  short-term  investment  grade
securities before liquidating higher-yielding longer term securities.

The Company is subject to risk based capital guidelines established by statutory
regulators  requiring  minimum  capital  levels based on the  perceived  risk of
assets, liabilities, disintermediation, and business risk. At June 30, 2001, and
December  31,  2000,  the life  insurance  subsidiary  exceeded  the  regulatory
criteria.

                                       12

<PAGE>



The Company's total  capitalization  of  stockholders'  equity and bank debt and
notes payable was $40,749,000 as of June 30, 2001, as compared to $40,787,000 as
of  December  31,  2000.  Stockholders'  equity as a percent  of  capitalization
increased to 69% as of June 30, 2001, from 64% as of December 31, 2000.

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

At June 30, 2001, $22,794,000 of the Company's consolidated stockholders' equity
represents  the statutory  stockholders'  equity of the Company's life insurance
subsidiaries.  The life  insurance  subsidiaries  cannot pay a  dividend  to its
parent company without the approval of insurance regulatory authorities.

Item 3.  Quantitative and Qualitative Disclosure of Market Risk

There have been no  significant  changes since the annual report Form 10-K filed
for the year ended December 31, 2001.

                           Part II Other Information:

Item 1.        Legal Proceedings

               The Company is not a party to any other legal proceedings outside
               the  ordinary  course of the  Company's  business or to any other
               legal  proceedings  which,  adversely  determined,  would  have a
               material adverse effect on the Company or its business.

Item 2.        Changes in Securities

               NONE

Item 3.        Defaults Upon Senior Securities

               NONE

Item 4.        Submission of Matters to a Vote of Security Holders

               NONE

Item 5.        Other Information

               NONE

Item 6.        Exhibits and Reports on Form 8-K

   (a)         Exhibits

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

     4.  A. Specimen  Class A Stock Certificate (1)
         B. Specimen Class C Stock Certificate  (1)
         C. Specimen Preferred Stock Certificate and Certificate of
             Designation of Preferred  Stock (1)
      10.A. Restated and Amended Employee Stock Ownership Plan and Trust
             Agreement (1)
         B. Deferred Compensation Agreement with George R. Quist (2)
         C. 1993 Stock Option Plan (3)
         D  Promissory  Note with Key Bank of Utah (4)
         E. Loan and Security  Agreement with Key Bank of Utah (4)
         F. General Pledge Agreement with Key Bank of Utah (4)
         G. Note Secured by Purchase Price Deed of Trust and Assignment
            of Rents with the Carter Family Trust and the Leonard M. Smith
            Family Trust (5)
         H. Deed of Trust and Assignment of Rents with the Carter
             Family Trust and the Leonard M. Smith Family Trust (5)

                                       13

<PAGE>



         I. Promissory Note with Page and Patricia Greer (6)
         J. Pledge Agreement with Page and Patricia Greer (6)
         K. Promissory Note with Civil Service Employees Insurance Company (7)
         L. Deferred Compensation Agreement with William C. Sargent (8)
         M. Employment Agreement with Scott M. Quist. (8)
         N. Acquisition Agreement with Consolidare Enterprises, Inc., and
            certain shareholders of Consolidare. (9)
         O. Agreement and Plan of Merger between Consolidare Enterprises, Inc.,
            and SSLIC Holding Company. (10)
         P. Administrative Services Agreement with Southern Security Life
            Insurance Company. (11)
         Q. Promissory Note with George R. Quist. (12)
         R. Settlement Agreement with Capitol Indemnity Corporation, George A.
            Fait, and Joel G. Fait. (13)
         (1) Incorporated by reference from Registration Statement on Form
             S-1, as filed on June 29, 1987.
         (2) Incorporated by reference from Annual Report on Form 10-K, as
             filed on March 31, 1989.
         (3) Incorporated by reference from Annual Report on Form 10-K, as
             filed on March 31, 1994.
         (4) Incorporated by reference from Report on Form 8-K, as filed on
             February 24, 1995.
         (5) Incorporated by reference from Annual Report on Form 10K, as
             filed on March 31, 1995.
         (6) Incorporated by reference from Report on Form 8-K, as filed on
             May 1, 1995.
         (7) Incorporated by reference from Report on Form 8-K, as filed on
             January 16, 1996.
         (8) Incorporated by reference from Annual Report on Form 10-K, as
             filed on March 31, 1998.
         (9) Incorporated by reference from Report on Form 8-K, as filed on
             May 11, 1998.
        (10) Incorporated by reference from Report on Form 8-K, as filed on
             January 4, 1999.
        (11) Incorporated by reference from Report on Form 8-K, as filed on
             March 4, 1999.
        (12) Incorporated by reference from Annual Report on Form 10-K, as
             filed on April 14, 1999.
        (13) Incorporated by reference from Quarterly Report on Form 10-Q, as
             filed on August 21, 2000.

    (b)      Reports on Form 8-K:

             NONE


                                       14

<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 20, 2001           By:    George R. Quist,
                                        ----------------
                                        Chairman of the Board,
                                        President and Chief Executive Officer
                                        (Principal Executive Officer)


DATED: August 20, 2001            By:    Scott M. Quist
                                         --------------
                                         First Vice President, General Counsel,
                                         Treasurer and Director (Principal
                                         Financial and Accounting Officer)

                                       15

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