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, 2002             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                4,684,250
-------------------------------------      ---------------------------------
         Title of Class                    Number of Shares Outstanding as of
                                                   June 30, 2002


Class C Common Stock, $.20 par value                 5,822,148
------------------------------------       ----------------------------------
         Title of Class                    Number of Shares Outstanding as of
                                                   June 30, 2002



<PAGE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                                    FORM 10Q

                           QUARTER ENDED June 30, 2002

                                TABLE OF CONTENTS


                         PART I - FINANCIAL INFORMATION



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

         Consolidated Statement of Earnings - Six and three
         months ended June 30, 2002 and 2001 (unaudited)............3

         Consolidated Balance Sheet - June 30, 2002 (unaudited)
         and December 31, 2001 ...................................4-5

         Consolidated Statement of Cash Flows -
         Six months ended June 30, 2002 and 2001 (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......................................13-16

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

         Certification.............................................17

                                        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:                                    2002            2001         2002             2001
--------                                     ----            ----         ----             ----
<S>                                      <C>             <C>           <C>            <C>
Insurance premiums and
   other considerations                   $6,692,209     $6,583,184    $3,369,453     $3,102,047
Net investment income                      5,451,638      6,559,980     2,527,873      3,410,547
Net mortuary and cemetery sales            5,539,033      5,307,781     2,810,770      2,847,716
Realized gains on investments
   and other assets                          718,816          3,986          (601)          (111)
Mortgage fee income                       18,840,224     17,189,891     8,974,233      8,569,183
Other                                        308,967         54,998       267,620         23,674
                                        ------------   ------------  ------------   ------------
   Total revenues                         37,550,887     35,699,820    17,949,348     17,953,056

Benefits and expenses:
---------------------
Death benefits                             2,973,101      2,790,758     1,304,431      1,285,849
Surrenders and other policy benefits       1,070,100        836,554       440,189        539,955
Increase in future policy benefits         2,059,116      2,543,794     1,311,930      1,249,250
Amortization of deferred policy
   acquisition costs and cost of
   insurance acquired                      1,768,769      1,948,946       934,242        871,209
General and administrative expenses:
   Commissions                            13,962,770     13,077,428     6,931,677      6,625,893
   Salaries                                5,383,137      4,239,587     2,774,187      2,202,924
   Other                                   6,365,369      5,969,016     3,054,028      2,936,035
Interest expense                             522,796      1,618,292       200,443        910,739
Cost of goods and services sold
  of the mortuaries and cemeteries         1,282,793      1,381,405       682,468        747,808
                                        ------------    -----------  ------------   ------------
   Total benefits and expenses            35,387,951     34,405,780    17,633,595     17,369,662

Earnings before income taxes               2,162,936      1,294,040       315,753        583,394
Income tax expense                          (530,818)      (354,660)      (74,446)      (164,504)
Minority interest (income)
   loss of subsidiary                         14,365         35,186        25,315         26,683
                                        ------------    -----------  ------------   ------------

      Net earnings                        $1,646,483       $974,566      $266,622       $445,573
                                        ============    ===========  ============   ============

Net earnings per common share                   $.35           $.22          $.06           $.10
                                                ====           ====          ====           ====
   Weighted average outstanding
      common shares                        4,678,817      4,450,839     4,680,628      4,450,839

Net earnings per common
   share-assuming dilution                      $.33           $.22          $.05           $.10
                                                ====           ====          ====           ====

   Weighted average outstanding
      common shares assuming-dilution      5,011,394       4,451,094    5,024,915      4,451,048

See accompanying notes to consolidated financial statements.

</TABLE>
                                        3

<PAGE>



                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET


                                                June 30, 2002      December 31,
                                                 (Unaudited)          2001
                                              --------------       -----------
Assets:
Insurance-related investments:
Fixed maturity securities held
   to maturity, at amortized cost                $28,854,886        $27,799,909
Fixed maturity securities available
   for sale, at market                            19,216,767         21,470,729
Equity securities available for sale,
   at market                                       2,394,173          2,641,549
Mortgage loans on real estate                     13,798,647         15,479,305
Real estate, net of accumulated
   depreciation                                    9,719,462          9,051,691
Policy, student and other loans                   10,961,639         11,277,975
Short-term investments                             2,636,041          1,453,644
                                               -------------      -------------
      Total insurance-related
         investments                              87,581,615         89,174,802
Restricted assets
   of cemeteries and mortuaries                    5,532,577          5,339,436
Cash                                              14,172,291          8,757,246
Receivables:
   Trade contracts                                 5,157,627          6,945,274
   Mortgage loans sold to investors               49,275,266         50,695,073
   Receivable from agents                          1,986,129          2,061,541
   Receivable from officers                           82,290            102,200
   Other                                           1,214,641          1,183,927
                                               -------------      -------------
      Total receivables                           57,715,953         60,988,015
   Allowance for doubtful accounts                (2,097,303)        (2,287,241)
                                               -------------      -------------
   Net receivables                                55,618,650         58,700,774
Policyholder accounts on deposit
   with reinsurer                                  7,081,246          7,148,068
Land and improvements held for sale                8,138,927          8,346,448
Accrued investment income                          1,031,413          1,059,789
Deferred policy acquisition costs                 15,385,759         14,453,023
Property, plant and equipment, net                11,107,005         10,802,387
Cost of insurance acquired                         7,246,690          7,615,348
Excess of cost over net assets
   of acquired subsidiaries                        1,047,833          1,065,045
Other                                                686,191            597,209
                                               -------------      -------------
      Total assets                              $214,630,197       $213,059,575
                                               =============      =============


















See accompanying notes to consolidated financial statements.

                                        4

<PAGE>



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



                                                 June 30, 2002     December 31,
                                                  (Unaudited)         2001
                                                --------------     -----------
Liabilities:
------------
Future life, annuity, and other
   policy benefits                               $141,146,243      $140,504,866
Unearned premium reserve                            1,918,614         1,785,977
Bank loans payable                                  8,150,628         8,461,900
Notes and contracts payable                         3,325,016         3,635,776
Estimated future costs of
   pre-need sales                                   9,578,535         9,338,353
Payable to endowment care fund                         22,655             5,586
Accounts payable                                    1,141,190         1,319,319
Funds held under reinsurance
   treaties                                         1,342,235         1,379,640
Other liabilities and
   accrued expenses                                 4,761,704         5,547,213
Income taxes                                        7,435,648         6,874,597
                                                -------------     -------------
      Total liabilities                           178,822,468       178,853,227

Minority interest                                   4,250,072         4,237,030

Stockholders' Equity:
--------------------
Common stock:
      Class A: $2 par value,
         authorized 10,000,000
         shares, issued 5,385,887
         shares in 2002 and 5,363,591
         shares in 2001                            10,771,774        10,727,182
      Class C: $0.20 par value,
         authorized 7,500,000 shares,
         issued 5,890,480 shares in
         2002 and 6,113,430 shares
         in 2001                                    1,178,096         1,222,686
                                                -------------     -------------
Total common stock                                 11,949,870        11,949,868
Additional paid-in capital                         10,168,522        10,168,523
Accumulated other comprehensive
   income, net of deferred taxes                    1,127,961         1,223,930
Retained earnings                                  11,635,713         9,989,230
Treasury stock at cost (1,283,852
   in 2002 and 1,294,716 in 2001
      Class A shares and 68,332 Class C
      shares in 2002 and 2001 held
      by affiliated companies)                     (3,324,409)       (3,362,233)
                                                -------------     -------------
Total stockholders' equity                         31,557,657        29,969,318
                                                -------------     -------------
   Total liabilities and
      stockholders' equity                       $214,630,197      $213,059,575
                                                =============     =============













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,
                                                   2002               2001
                                                   ----               ----
Cash flows from operating activities:
      Net cash provided by (used in)
      operating activities                      $7,127,294        $(6,249,704)
                                               ------------       ------------

Cash flows from investing activities:
   Securities held to maturity:
      Purchase - fixed maturity securities       (4,062,931)       (402,995)
      Calls and maturities - fixed
        maturity securities                       3,046,980       8,094,041
   Securities available for sale:
      Calls and maturities - fixed
         maturity securities                      2,301,497       1,064,816
      Purchase of equity securities                    (367)         --
      Sales of equity securities                     11,381
   Purchases of short-term investments           (1,182,397)    (10,015,902)
   Sales of short-term investments                    --          8,575,000
   Purchases of restricted assets                  (193,141)       (295,053)
   Mortgage, policy, and other loans made          (652,143)     (2,161,454)
   Payments received for mortgage,
     real estate, policy, and other loans         3,197,227       1,851,468
   Purchases of property, plant,
      and equipment                                (869,642)       (431,896)
   Purchases of real estate                      (1,409,857)        (28,085)
                                               ------------    ------------

         Net cash provided by
            investing activities                    175,226       6,261,321
                                               ------------    ------------

Cash flows from financing activities:
   Annuity receipts                               4,345,939       3,540,035
   Annuity withdrawals                           (5,649,206)     (6,801,813)
   Repayment of bank loans and
      notes and contracts payable                  (808,626)     (1,227,903)
   Proceeds from borrowings on bank
      loans and notes and contracts payable         186,594         --
   Sale of treasury stock                            37,824         --
                                               ------------    ------------

   Net cash used in financing
      activities                                 (1,887,475)     (4,489,681)
                                               ------------    ------------
Net change in cash                                5,415,045      (4,478,064)

Cash at beginning of period                       8,757,246      11,275,030
                                               ------------    ------------

Cash at end of period                           $14,172,291      $6,796,966
                                               ============    ============















See accompanying notes to consolidated financial statements.

                                        6

<PAGE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 30, 2002
                                   (Unaudited)


1.  Basis of Presentation

The accompanying  unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States
of America 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  accounting  principles  generally
accepted in the United States of America 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 three months ended June 30, 2002, are not necessarily
indicative of the results that may be expected for the year ending  December 31,
2002. For further  information,  refer to the consolidated  financial statements
and  footnotes  thereto for the year ended  December 31,  2001,  included in the
Company's Annual Report on Form 10-K (file number 0-9341).

The preparation of financial statements in conformity with accounting principles
generally  accepted in the United States of America 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,  2002 and 2001,  total  comprehensive  income
amounted to $1,550,514 and $1,189,256, respectively.

For the three months ended June 30, 2002 and 2001,  total  comprehensive  income
amounted to $242,703 and $526,238, respectively.

3.   Capital Stock

The basic and diluted earnings per share amounts were calculated as follows:

                                          Six Months Ended June 30,
                                       2002                    2001
                                       ----                    ----
Numerator:
      Net income                     $1,646,483                   $974,566
                                     ==========                 ==========

Denominator:
      Denominator for basic
        earnings per share--
        weighted-average shares       4,678,817                  4,450,839
                                     ----------                 ----------

      Effect of dilutive securities:
        Employee stock options          304,318                        255
        Stock Appreciation Rights        28,259                         --
                                     ----------                 ----------

      Dilutive potential
         common shares                  332,577                        255
                                     ----------                 ----------

      Denominator for diluted earnings
        per share-adjusted weighted-
        average shares and assumed
        conversions                   5,011,394                  4,451,094
                                     ==========                 ==========

      Basic earnings per share           $0.35                      $0.22
                                         =====                      =====

      Diluted earnings per share         $0.33                      $0.22
                                         =====                      =====

                                        7

<PAGE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 30, 2002
                                   (Unaudited)


3.       Capital Stock

                                              Three Months Ended June 30,
                                            2002                    2001
                                            ----                    ----
Numerator:
      Net income                      $   266,622               $   445,573
                                      ===========               ===========

Denominator:
      Denominator for basic
        earnings per share--
        weighted-average shares         4,680,628                 4,450,839

      Effect of dilutive securities:
        Employee stock options            314,050                       209
        Stock appreciation rights          30,237                     --
                                      -----------                ----------

      Dilutive potential
        common shares                     344,287                       209
                                      -----------                ----------

      Denominator for diluted earnings
        per share-adjusted weighted-
        average shares and assumed
        conversions                     5,024,915                 4,451,048
                                      ===========               ===========

      Basic earnings per share             $0.06                     $0.10
                                           =====                     =====

      Diluted earnings per share           $0.05                     $0.10
                                           =====                     =====

4. Recent Accounting  Pronouncement
   -------------------------------
Management has considered  whether  impairment exists on goodwill in relation to
Statement of Financial  Accounting Standards No. 142, and does not believe there
is any material impairment.

                                        8

<PAGE>
<TABLE>
<CAPTION>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                                  June 30, 2002
                                   (Unaudited)


5.  Business Segment

                                   Life         Cemetery/                     Reconciling
                                 Insurance      Mortuary       Mortgage           Items         Consolidated
                                 ---------      --------       --------           -----         ------------
For the Six Months Ended
   June 30, 2002
------------------------
<S>                             <C>           <C>               <C>            <C>            <C>
   Revenues from
      external customers        $9,761,198    $6,751,231        $21,038,458    $     --        $37,550,887

   Intersegment revenues         2,277,396         --                 --        (2,277,396)         --

   Segment profit                  504,694     1,026,417            631,825          --          2,162,936

   Identifiable assets         202,337,272    40,505,340          5,717,796    (33,930,211)    214,630,197

For the Six Months Ended
   June 30, 2001
------------------------
   Revenues from
      external customers       $10,330,316    $5,808,111        $19,561,393    $      --       $35,699,820

   Intersegment revenues         1,777,926        --                 --        (1,777,926)          --

   Segment profit                  559,229       172,076            562,735           --         1,294,040

   Identifiable assets         198,966,779    36,555,814          4,892,580   (31,820,626)     208,594,547

For the Three Months Ended
   June 30, 2002
--------------------------
   Revenues from
      external customers        $4,887,456    $3,062,323         $9,999,569    $     --        $17,949,348

   Intersegment revenues         1,071,324        --                 --        (1,071,324)           --

   Segment profit                  168,843        55,575             91,335          --            315,753

For the Three Months Ended
   June 30, 2001
--------------------------
   Revenues from
      external customers        $4,986,554    $3,100,698         $9,865,804    $     --       $17,953,056

   Intersegment revenues           963,925        --                 --          (963,925)          --

   Segment profit                  241,064        (5,864)           348,194          --           583,394
</TABLE>

                                        9

<PAGE>





Item 2.  Management's Discussion and Analysis

Overview

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

During the six months ended June 30, 2002,  Security  National  Mortgage Company
("SNMC")  experienced  increases  in revenue and expenses due to the increase in
loan volume of its operations.  SNMC is a mortgage lender incorporated under the
laws of the State of Utah. SNMC is approved and regulated by the Federal Housing
Administration  (FHA), a department of the U.S.  Department of Housing and Urban
Development  (HUD),  to originate  mortgage  loans that  qualify for  government
insurance in the event of default by the borrower.  SNMC obtains loans primarily
from independent brokers and correspondents.  SNMC funds the loans from internal
cash flows and lines of credit from financial  institutions.  SNMC receives fees
from  origination  points paid by the borrowers and service and release premiums
received from third party investors who purchase the loans from SNMC. SNMC sells
all of its loans to third party investors and does not retain servicing to these
loans. SNMC pays the brokers and  correspondents a commission for loans that are
brokered through SNMC. SNMC originated and sold 4,132  ($587,497,000)  and 3,806
($553,489,000)  loans  respectively  for the six months  ended June 30, 2002 and
2001.

Results of Operations

Six Months Ended June 30, 2002 Compared to Six Months Ended June 30, 2001

Total  revenues  increased by $1,851,000,  or 5.2%, to  $37,551,000  for the six
months ended June 30, 2002,  from  $35,700,000 for the six months ended June 30,
2001.  Contributing to this increase in total revenues was a $1,650,000 increase
in mortgage fee income, a $231,000  increase in net mortuary and cemetery sales,
a $109,000  increase  in  insurance  premiums  and other  considerations,  and a
$715,000 increase in realized gains on investments and other assets.

Insurance premiums and other considerations  increased by $109,000,  or 1.7%, to
$6,692,000  for the six months  ended June 30,  2002,  from  $6,583,000  for the
comparable period in 2001. This increase was primarily the result of an increase
in the  amortization  of  unearned  premium  reserve  to the  Company's  current
actuarial assumptions.

Net investment  income  decreased by $1,108,000 or 16.9%,  to $5,452,000 for the
six months ended June 30, 2002,  from  $6,560,000 for the  comparable  period in
2001. This decrease was primarily attributable to lower yields on investments.

Net mortuary and cemetery  sales  increased by $231,000,  or 4.4%, to $5,539,000
for the six months  ended June 30,  2002,  from  $5,308,000  for the  comparable
period in 2001. This increase was primarily due to additional  at-need  cemetery
and mortuary sales.

Realized  gains on  investments  and other  assets  increased  by  $715,000,  to
$719,000 for the six months ended June 30, 2002,  from $4,000 for the comparable
period in 2001.  This increase was the result of the sale of  approximately  3.5
acres at Lakehills Cemetery in Sandy, Utah to the Utah Transit Authority.

Mortgage fee income increased by $1,650,000, or 9.6%, to $18,840,000 for the six
months ended June 30, 2002, from $17,190,000 for the comparable  period in 2001.
This  increase  was  primarily   attributable   to  a  greater  number  of  loan
originations  during  the six  months of 2002 due to the  opening  of new branch
offices in Mesa, Arizona and Houston, Texas.

                                       10

<PAGE>





Total benefits and expenses were  $35,388,000,  or 94.2%,  of total revenues for
the six months ended June 30, 2002,  as compared to  $34,406,000,  or 96.4%,  of
total revenues for the comparable period in 2001.

Death  benefits,  surrenders  and other  policy  benefits and increase in future
policy benefits decreased by an aggregate of $69,000, or 1.1%, to $6,102,000 for
the six months ended June 30, 2002, from $6,171,000 for the comparable period in
2001.  This  decrease  was  primarily  the result of a reduction in reserves for
policyholders.

Amortization of deferred policy acquisition costs and cost of insurance acquired
decreased by $180,000, or 9.2 %, to $1,769,000 for the six months ended June 30,
2002,  from  $1,949,000  for the  comparable  period in 2001.  This decrease was
primarily  due to the  adjustment  of the  amortization  rate  to the  Company's
current actuarial assumptions.

General and  administrative  expenses  increased  by  $2,425,000,  or 10.4%,  to
$25,711,000  for the six months ended June 30, 2002,  from  $23,286,000  for the
comparable period in 2001. This increase  primarily resulted from an increase in
commissions,  salaries  and  other  expenses  due to  additional  mortgage  loan
originations  having been made by the Company's  mortgage  subsidiary during the
six months of 2002.

Interest  expense  decreased  by  $1,095,000  or 67.7%,  to $523,000 for the six
months ended June 30, 2002, from  $1,618,000 for the comparable  period in 2001.
This  decrease was primarily due to lower  interest  rates and fewer  borrowings
under  the  Company's  warehouse  lines of credit  required  for  mortgage  loan
originations by the Company's mortgage subsidiary.

Cost of goods and services sold of the mortuaries  and  cemeteries  decreased by
$98,000,  or 7.1%,  to $1,283,000  for the six months ended June 30, 2002,  from
$1,381,000 for the comparable period in 2001. This decrease was primarily due to
greater sales of cemetery burial property sales in 2002, which have a lower cost
of goods sold than other funeral products.

Second Quarter of 2002 Compared to Second Quarter of 2001

Total revenues  decreased by $4,000,  to $17,949,000  for the three months ended
June 30,  2002,  from  $17,953,000  for the three  months  ended June 30,  2001.
Contributing to this decrease in total revenues was an $883,000  decrease in net
investment income and a $37,000 decrease in net mortuary and cemetery sales.

Insurance premiums and other considerations  increased by $267,000,  or 8.6%, to
$3,369,000  for the three months ended June 30, 2002,  from  $3,102,000  for the
comparable  period in 2001. This increase was primarily due to the adjustment of
the  amortization  rate of unearned  premium  reserve to the  Company's  current
actuarial assumptions.

Net investment  income  decreased by $883,000,  or 25.7%,  to $2,528,000 for the
three months ended June 30, 2002, from  $3,411,000 for the comparable  period in
2001. This decrease was primarily attributable to lower yields on investments.

Net mortuary and cemetery sales decreased by $37,000, or 1.3%, to $2,811,000 for
the three months ended June 30, 2002, from $2,848,000 for the comparable  period
in 2001. This decrease is primarily due to fewer at-need mortuary sales.

Mortgage fee income increased by $405,000,  or 4.7%, to $8,974,000 for the three
months ended June 30, 2002, from  $8,569,000 for the comparable  period in 2001.
This  increase  was  primarily   attributable   to  a  greater  number  of  loan
originations during the second quarter of 2002, due to the opening of new branch
offices in Mesa, Arizona and Houston, Texas.

Total benefits and expenses were  $17,634,000,  or 98.3%,  of total revenues for
the three months ended June 30 2002, as compared to  $17,370,000,  or 96.8%,  of
total revenues for the comparable period in 2001.

                                       11

<PAGE>





Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy benefits decreased by an aggregate of $18,000,  or .6%, to $3,057,000 for
the three months ended June 30, 2002, from $3,075,000 for the comparable  period
in 2001.  This  decrease  was  primarily  the result of a reduction  in interest
credited on policyholder account balances.

Amortization of deferred policy acquisition costs and cost of insurance acquired
increased by $63,000, or 7.2%, to $934,000,  for the three months ended June 30,
2002, from $871,000 for the comparable period in 2001. This increase was in line
with actuarial assumptions.

General  and   administrative   expenses  increased  by  $995,000  or  8.5%,  to
$12,760,000 for the three months ended June 30, 2002,  from  $11,765,000 for the
comparable period in 2001. 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 2002.

Interest  expense  decreased  by $711,000,  or 78.0%,  to $200,000 for the three
months ended June 30, 2002,  from  $911,000 for the  comparable  period in 2001.
This  decrease was primarily due to lower  interest  rates and fewer  borrowings
under  the  Company's  warehouse  lines of credit  required  for  mortgage  loan
originations by the Company's mortgage subsidiary.

Cost of mortuaries and cemeteries  goods and services sold decreased by $66,000,
or 8.7%, to $682,000 for the three months ended June 30, 2002, from $748,000 for
the comparable  period in 2001. This decrease was primarily due to greater sales
of cemetery burial property sales in 2002, which have a lower cost of goods sold
than other funeral products.

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 $48,072,000 as of June 30, 2002, compared to
$49,271,000 as of December 31,

                                       12

<PAGE>





2001. This represents 55% of the total insurance-related  investments as of June
30,  2002,  and  December  31,  2001.  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, 2002 and December 31, 2001, 5%  ($2,438,000)  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, 2002 and
December  31,  2001,  the life  insurance  subsidiary  exceeded  the  regulatory
criteria.

The Company's total  capitalization  of  stockholders'  equity and bank debt and
notes payable was $43,033,000 as of June 30, 2002, as compared to $42,067,000 as
of  December  31,  2001.  Stockholders'  equity as a percent  of  capitalization
increased to 73% as of June 30, 2002, from 71% as of December 31, 2001.

Lapse  rates  measure the amount of  insurance  terminated  during a  particular
period.  The  Company's  lapse  rate for  life  insurance  in 2001 was  13.2% as
compared to a rate of 15.0% for 2000. The 2002 lapse rate is  approximately  the
same as 2001.

At June 30, 2002, $23,889,000 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

               An action was brought  against  Southern  Security Life Insurance
               Company  in July 1999 by Dorothy  Ruth  Campbell  in the  Circuit
               Court of Escambia  County,  Alabama.  The action  arises out of a
               denial of coverage under a $10,000 insurance  policy.  The claims
               are  for   breach  of   contract,   bad   faith  and   fraudulent
               misrepresentation. In the action, Campbell seeks compensatory and
               punitive  damages  plus  interest.  The  Company  has  filed  its
               response to the complaint and certain  discovery has taken place.
               A motion for summary  judgment filed on behalf of the Company was
               denied.  A trial date has yet to be set as the Company  continues
               to vigorously defend the matter.

               An action was brought  against the Company in May 2001, by Glenna
               Brown Thomas  individually and as personal  representative of the
               Estate of Lynn W. Brown in the Third  Judicial  Court,  Salt Lake
               County,  Utah. The action asserts that Memorial Estates delivered
               to Lynn W. Brown six stock certificates representing 2,000 shares
               in 1970 and 1971.  Mr. Brown died in 1972. It is asserted that at
               the time the 2,000  shares  were  issued  and  outstanding,  such
               represented a 2% ownership of Memorial Estates. It is alleged Mr.
               Brown  was  entitled  to  preemptive  rights  and that  after the
               issuance of the stock to Mr. Brown there were  further  issuances
               of stock  without  providing  written  notice to Mr. Brown or his
               estate with respect to

                                       13

<PAGE>



               an opportunity to purchase more stock. It is asserted among other
               things that the plaintiff "has the right to a transfer of Brown's
               shares to Thomas on defendants' (which includes Security National
               Financial  Corporation as well as Memorial  Estates,  Inc.) books
               and to  restoration of Brown's  proportion of share  ownership in
               Memorial  at the time of his death by  issuance  and  delivery to
               Thomas of sufficient  shares of defendant's  publicly  traded and
               unrestricted  stock in exchange  for the 2,000 shares of Memorial
               stock and  payment  of all  dividends  from the date of  Thomas's
               demand,   as   required   by  Article  XV  of  the   Articles  of
               Incorporation." Based on present information, the Company intends
               to vigorously defend the matter,  including an assertion that the
               statute of limitations bars the claims.

               An action was brought  against  Southern  Security Life Insurance
               Company by National  Group  Underwriters,  Inc.  ("NGU") in state
               court in the State of Texas.  The case was removed by the Company
               to the United States District Court for the Northern  District of
               Texas,  Fort Worth  Division,  with Civil No.  4:01-CV-403-E.  An
               Amended  Complaint  was  filed on or about  July  18,  2001.  The
               Amended  Complaint  asserts  that  NGU had a  contract  with  the
               Company  wherein  NGU  would  submit   applications  for  certain
               policies of insurance to be issued by the Company.  It is alleged
               that disputes have arisen between NGU and the Company with regard
               to the calculation and payment of certain advanced commissions as
               well as certain production bonuses.

               NGU  alleges  that it "has  been  damaged  far in  excess  of the
               $75,000  minimum  jurisdictional  limits of this Court." NGU also
               seeks  attorney's  fees  and  costs  as well as  prejudgment  and
               postjudgment  interest.  A second  amended  complaint and a third
               amended  complaint,  which included a fraud claim,  were filed. A
               motion  was filed by the  Company to  dismiss  the third  amended
               complaint,  including  the  fraud  claim.  The court  denied  the
               motion. The Company has counterclaimed for what it claims to be a
               debit  balance owing to it pursuant to the  relationship  between
               the parties with said counterclaim  seeking a substantial  amount
               from  NGU  (said  amount  potentially  subject  to  reduction  as
               premiums  are  received).  The Company is also seeking to recover
               attorney's fees and costs,  as well punitive  damages on three of
               its  causes of action.  A response  has not yet been filed to the
               amended  counterclaim.  The change of venue motion of the Company
               was  denied.  Certain  discovery  has  taken  place  and  further
               discovery is anticipated, e.g., dispositions. The Company intends
               to  vigorously  defend  the  matter  as  well  as  prosecute  its
               counterclaim.

               An  action  was  brought  by  Bernice  Johnson  against  Southern
               Security Life Insurance Company in May, 2002 in the Circuit Court
               of Jefferson  County,  Alabama,  Civil Action No. CV02 2963.  The
               face amount of coverage under the policy is $15,000.  The insured
               died in July 2001. Claims are made for non- payment of the policy
               amount. The claims for relief include  misrepresentation,  mental
               anguish and emotional distress, fraud, intentional and bad faith,
               non-payment of the benefit,  intentional and bad faith failure to
               investigate  the claim for  benefits,  reckless and negligent and
               wanton action relative to misrepresentation and/or concealment of
               facts, negligence and the wanton hiring, training and supervision
               of agent. Compensatory and punitive damages are sought along with
               interest  and costs.  An answer has been filed by the Company and
               discovery is in process.

               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, if 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


                                       14

<PAGE>





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)(3)  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.  2000 Director Stock Option Plan (12)
      E.  Promissory Note with Key Bank of Utah (4)
      F.  Loan and Security Agreement with Key Bank of Utah (4)
      G.  General Pledge Agreement with Key Bank of Utah (4)
      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.  Promissory Note with Civil Service Employees Insurance Company (7)
      M.  Deferred Compensation Agreement with William C. Sargent (8)
      N.  Employment Agreement with Scott M. Quist. (8)
      O.  Acquisition Agreement with Consolidare Enterprises, Inc., and certain
          shareholders of Consolidare. (9)
      P.  Agreement and Plan of Merger between Consolidare Enterprises, Inc.,
          and SSLIC Holding Company. (10)
      Q.  Administrative Services Agreement with Southern Security Life
          Insurance Company. (11)
      R.  Promissory Note with George R. Quist (13)
      S.  Deferred Compensation Plan (14)

         (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.

                                       15

<PAGE>





        (11)    Incorporated by reference from Report on Form 8-K, as filed
                on March 4, 1999.
        (12)    Incorporated by reference from Schedule 14A Definitive Proxy
                Statement, filed August 29, 2000, relating to the Company's
                Annual Meeting of Shareholders.
        (13)    Incorporated by reference from Report on Form 10-K, as filed
                on April 16, 2001.
        (14)    Incorporated by reference from Report on Form 10-K, as filed
                on April 3, 2002.

    21.  Subsidiaries of the Registrant

         (b)      Reports on Form 8-K:

            None


                                       16

<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, 2002               By:      George R. Quist,
                                              ----------------
                                              Chairman of the Board and
                                              Chief Executive Officer
                                              (Principal Executive Officer)


DATED: August 14, 2002               By:      Stephen M. Sill
                                              ---------------
                                              Vice President
                                              Treasurer and Chief
                                              Financial Officer (Principal
                                              Financial and Accounting Officer)

                            CERTIFICATION PURSUANT TO
                               18 U.S.C. ss. 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In  connection  with  the  Quarterly  Report  of  Security  National   Financial
Corporation  (the "Company") on Form 10Q for the period ending June 30, 2002, as
filed with the  Securities  and  Exchange  Commission  on the date  hereof  (the
"Report"), I, George R. Quist, Chief Executive Officer of the Company,  certify,
pursuant  to 18 U.S.C.  ss.  1350,  as adopted  pursuant  to Section  906 of the
Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

     (1)  the Report fully  complies with the  requirements  of Section 13(a) or
          15(d) of the Securities Exchange Act of 1934; and

     (2)  the  information  contained  in the  Report  fairly  presents,  in all
          material respects, the financial condition and result of operations of
          the Company.

George R. Quist
Chief Executive Officer
August 14, 2002

                            CERTIFICATION PURSUANT TO
                               18 U.S.C. ss. 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In  connection  with  the  Quarterly  Report  of  Security  National   Financial
Corporation  (the "Company") on Form 10Q for the period ending June 30, 2002, as
filed with the  Securities  and  Exchange  Commission  on the date  hereof  (the
"Report"), I, Stephen M. Sill, Chief Financial Officer of the Company,  certify,
pursuant  to 18 U.S.C.  ss.  1350,  as adopted  pursuant  to Section  906 of the
Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

     (1)  the Report fully  complies with the  requirements  of Section 13(a) or
          15(d) of the Securities Exchange Act of 1934; and

     (2)  the  information  contained  in the  Report  fairly  presents,  in all
          material respects, the financial condition and result of operations of
          the Company.

Stephen M. Sill
Chief Financial Officer
August 14, 2002

                                       17

<PAGE>