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 September 30, 2005           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  X         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                5,566,229
-------------------------------------             --------------
         Title of Class                      Number of Shares Outstanding
                                               as of September 30, 2005


Class C Common Stock, $.20 par value                 6,326,592
------------------------------------               ------------
         Title of Class                      Number of Shares Outstanding
                                               as of September 30, 2005


<PAGE>


                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES

                                    FORM 10-Q

                        QUARTER ENDED SEPTEMBER 30, 2005

                                TABLE OF CONTENTS


                         PART I - FINANCIAL INFORMATION

<TABLE>
<CAPTION>


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

<S>     <C>                                                          <C>
         Condensed Consolidated Statements of Earnings -
         Nine and three months ended September 30, 2005
         and 2004 (unaudited)..........................................3

         Condensed Consolidated Balance Sheets -
         September 30, 2005, and December 31, 2004 (unaudited).......4-5

         Condensed Consolidated Statements of Cash Flows -
         Nine months ended September 30, 2005 and 2004 (unaudited).....6

         Notes to Condensed Consolidated Financial Statements
         (unaudited)................................................7-15


Item 2   Management's Discussion and Analysis of Financial
------   Condition and Results of Operations.......................15-19

Item 3   Quantitative and Qualitative Disclosures about
------   Market Risk..................................................19


Item 4   Controls and Procedures......................................19
------

                           PART II - OTHER INFORMATION

            Other Information......................................20-25

            Signature Page............................................26

            Certifications.........................................27-29

</TABLE>

<PAGE>
<TABLE>
<CAPTION>


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


                                                        Three Months Ended                      Nine Months Ended
                                                          September 30,                           September 30,
Revenues:                                          2005                 2004                 2005              2004
--------                                           ----                 ----                 ----              ----
<S>                                            <C>                   <C>                <C>                 <C>
Insurance premiums and other
   considerations                               $ 6,437,047          $ 6,516,327         $20,329,776        $19,316,466
Net investment income                             5,475,357            4,097,144          14,918,458         11,895,451
Net mortuary and cemetery sales                   2,472,330            2,909,252           8,203,514          8,862,139
Realized gains on investments
    and other assets                                 15,379              142,240              38,693            147,563
Mortgage fee income                              21,055,796           12,908,022          51,321,888         48,231,477
Other            104,684                            124,817              415,004             555,003
          --------------                      -------------       --------------      --------------
   Total revenues                                35,560,593           26,697,802          95,227,333         89,008,099
                                               ------------          -----------         -----------      -------------

Benefits and expenses:
Death benefits                                    3,385,292            3,127,355           9,810,767         10,025,473
Surrenders and other policy benefits                226,244              278,353           1,049,121          1,049,526
Increase in future policy benefits                2,233,110            2,255,143           7,304,025          6,258,223
Amortization of deferred policy and
   pre-need acquisition costs and costs of
   insurance acquired                               667,554              638,872           2,276,595          3,403,664
General and administrative expenses:
   Commissions                                   15,267,155           10,675,849          39,592,775         37,476,010
   Salaries                                       3,960,552            3,622,953          11,709,035         10,930,883
   Other 5,882,937                                4,630,235           15,798,339          14,370,675
Interest expense                                  1,502,491              479,263           3,171,612          1,538,829
Cost of goods and services
   sold of the mortuaries and
   cemeteries                                       479,794              612,711           1,594,750          1,750,055
                                             --------------       --------------       -------------      -------------
   Total benefits and expenses                   33,605,129           26,320,734          92,307,019         86,803,338
                                               ------------         ------------        ------------       ------------

Earnings before income taxes                      1,955,464              377,068           2,920,314          2,204,761
Income tax expense                                 (628,751)              33,548            (762,218)          (492,324)
Minority interest                                   --                    39,695             --                  63,400
                                        ------------------      ----------------  ------------------    ---------------
      Net earnings                              $ 1,326,713        $     450,311         $ 2,158,096        $ 1,775,837
                                                ===========        =============         ===========        ===========

Net earnings per common share                        $0.22                $0.08                $0.35              $0.31
                                                     =====                =====                =====              =====
Weighted average outstanding
   common shares                                  6,159,174            5,714,812           6,119,472          5,686,157
                                               ============          ===========        ============        ===========

Net earnings per common share
   -assuming dilution                                $0.22                $0.08               $0.35               $0.31
                                                     =====                =====               =====               =====
Weighted average outstanding
   common hares- assuming dilution                6,159,919            5,715,207           6,143,984          5,799,244
                                                ===========          ===========         ===========        ===========

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


<PAGE>


                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                      CONDENSED CONSOLIDATED BALANCE SHEETS
                                   (Unaudited)



                                                  September 30,    December 31,
Assets:                                               2005            2004
-------                                               ----            ----
Insurance-related investments:
Fixed maturity securities held
  to maturity, at amortized cost                   $67,989,329      $69,984,761
Fixed maturity securities available
  for sale, at market                                8,708,842       11,066,025
Equity securities available for sale,
  at market                                          4,238,019        4,166,769
Mortgage loans on real estate and
  construction loans, net of allowance
  for losses                                        67,562,857       65,831,586
Real estate, net of accumulated
  depreciation and allowances for losses             9,852,443        9,709,129
Policy, student and other loans                     12,445,927       13,312,471
Short-term investments                               2,426,021        4,628,999
                                                 -------------    -------------
     Total insurance-related investments           173,223,438      178,699,740
                                                 -------------    -------------
Restricted assets of cemeteries and mortuaries       5,413,673        5,176,463
                                                 -------------    -------------
Cash                                                11,017,755       15,333,668
                                                 -------------    -------------
Receivables:
  Trade contracts                                    5,875,986        5,333,891
  Mortgage loans sold to investors                  60,418,850       47,167,150
  Receivable from agents                             1,708,548        1,416,211
  Receivable from officers                              --                1,540
  Other                                              1,483,406        1,120,157
                                                 -------------    -------------
     Total receivables                              69,486,790       55,038,949
  Allowance for doubtful accounts                   (1,215,654)      (1,302,368)
                                                 -------------    -------------
     Net receivables                                68,271,136       53,736,581
                                                 -------------    -------------
Policyholder accounts on deposit
   with reinsurer                                    6,608,138        6,689,422
Cemetery land and improvements held
   for sale                                          8,453,367        8,547,764
Accrued investment income                            2,050,876        1,743,721
Deferred policy and pre-need contract
   acquisition costs                                22,902,608       20,181,818
Property and equipment, net                         10,569,353       10,520,665
Cost of insurance acquired                          12,749,013       14,053,497
Excess of cost over net assets
  of acquired subsidiaries                             683,191          683,191
Other                                                2,635,887        1,107,230
                                                  ------------     ------------
     Total assets                                 $324,578,435     $316,473,760
                                                  ============     ============




See accompanying notes to condensed consolidated financial statements.


<PAGE>


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

                                                September 30       December 31,
                                                    2005             2004
                                                ---------------   ------------
Liabilities:
Future life, annuity, and other
   policy benefits                               $229,331,535     $224,529,539
Unearned premium reserve                            2,922,678        2,254,991
Bank loans payable                                  9,174,805       10,442,106
Notes and contracts payable                         2,295,156        2,888,539
Deferred pre-need cemetery and funeral
  contract revenues                                10,826,575       10,762,357
Accounts payable                                    1,542,696        1,064,269
Funds held under reinsurance treaties               1,153,691        1,184,463
Other liabilities and accrued expenses              9,162,491        6,371,343
Income taxes                                       12,795,178       11,497,967
                                                -------------    -------------
     Total liabilities                            279,204,805      270,995,574
                                                -------------    -------------

Commitments and contingencies                          --               --
                                                -------------    -------------

Minority interest                                      --            3,813,346
                                                -------------    -------------

Stockholders' Equity:
Common stock:
  Class A: $2.00 par value, authorized
         10,000,000 shares, issued 6,757,796
         shares in 2005 and 6,755,870 shares
         in 2004                                   13,515,592       13,511,740
  Class C:  convertible, $0.20 par value,
         authorized 7,500,000 shares, issued
         6,458,152 shares in 2005 and
         6,468,199 shares in 2004                   1,291,630        1,293,641
                                                -------------    -------------
     Total common stock                            14,807,222       14,805,381
Additional paid-in capital                         15,003,094       14,922,851
Accumulated other comprehensive (loss)
  and other items, net of deferred taxes            1,122,644          (11,352)
Retained earnings                                  17,523,205       15,365,259
Treasury stock at cost (1,191,567  Class A shares
     and 131,560 Class C shares in 2005;
     1,315,075 Class A shares and 79,103
     Class C shares in 2004, held
     by affiliated companies)                      (3,082,535)      (3,417,299)
                                                 ------------     ------------
     Total stockholders' equity                    45,373,630       41,664,840
                                                 ------------     ------------
         Total liabilities and
         stockholders' equity                    $324,578,435     $316,473,760
                                                 ============     ============



See accompanying notes to condensed consolidated financial statements.


<PAGE>


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

                                                Nine Months Ended September 30,
                                                     2005             2004
                                                     ----             ----
Cash flows from operating activities:
      Net cash provided by (used in)
      operating activities                          $(2,019,241)    $52,172,785
                                                   ------------    ------------

Cash flows from investing activities:
   Securities held to maturity:
      Purchase - fixed maturity securities           (5,484,347)    (35,298,358)
      Calls and maturities - fixed
         maturity securities                          7,381,707       6,013,487
   Securities available for sale:
      Sales - equity securities                       1,992,991       2,662,122
   Purchases of short-term investments              (11,924,755)    (27,167,080)
   Sales of short-term investments                   14,127,733      24,542,798
   Purchases of restricted assets                      (169,310)       (231,902)
   Mortgage, policy, and other loans made           (58,817,295)    (50,980,016)
   Payments received for mortgage,
      policy, and other loans                        57,737,641      28,538,130
   Purchases of property and equipment               (1,403,476)       (926,685)
   Purchases of real estate                          (2,995,748)     (1,830,045)
   Cash paid for purchase of subsidiary                      --        (304,042)
   Sale of real estate                                2,294,238         238,502
                                                   ------------    ------------
         Net cash (used in) provided by
         investing activities                         2,739,379     (54,743,089)
                                                   ------------    ------------

Cash flows from financing activities:
   Annuity and pre-need contract receipts             4,237,386       3,898,324
   Annuity and pre-need contract withdrawals         (7,111,885)     (7,532,453)
   Repayment of bank loans and notes and
      contracts payable                              (2,575,517)     (3,851,225)
   Stock options exercised                                   --              --
   Sale (Purchase) of Treasury Stock                    413,965         110,299
                                                   ------------    ------------
      Net cash used in financing activities          (5,036,051)     (7,375,055)
                                                   ------------    ------------

Net change in cash                                   (4,315,913)     (9,945,359)

Cash at beginning of period                          15,333,668      19,704,358
                                                   ------------    ------------

Cash at end of period                               $11,017,755      $9,758,999
                                                   ============    ============



See accompanying notes to condensed consolidated financial statements.


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2005 (Unaudited)

1.  Basis of Presentation

The accompanying unaudited condensed 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 and nine months ended September
30, 2005, are not necessarily indicative of the results that may be expected for
the year  ending  December  31,  2005.  For  further  information,  refer to the
consolidated  financial  statements  and  footnotes  thereto  for the year ended
December 31, 2004  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 fairly stated in all material respects.

2.   Comprehensive Income

For the three  months ended  September  30, 2005 and 2004,  total  comprehensive
income amounted to $2,586,656 and $515,113, respectively.

For the nine  months  ended  September  30, 2005 and 2004,  total  comprehensive
income amounted to $3,292,092 and $1,988,307, respectively.

3.   Stock-Based Compensation

The Company  accounts for  stock-based  compensation  under the  recognition and
measurement  principles  of APB Opinion No. 25,  Accounting  for Stock Issued to
Employees,  and related  interpretations.  The Company has adopted SFAS No. 123,
"Accounting for Stock-Based Compensation".  In accordance with the provisions of
SFAS 123,  the Company has  elected to continue to apply  Accounting  Principles
Board Opinion No. 25,  "Accounting for Stock Issued to Employees"  ("APB Opinion
No. 25"), and related  interpretations in accounting for its stock option plans.
In accordance with APB Opinion No. 25, no compensation  cost has been recognized
for these plans.  Had  compensation  cost for these plans been determined  based
upon the fair value at the grant date consistent with the methodology prescribed
under SFAS No. 123, net earnings  for the nine months ended  September  30, 2005
and 2004 would have been reduced by the following:


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2005 (Unaudited)


                                             Nine Months Ended September 30,
                                              2005                   2004
                                              ----                   ----

Net earnings as reported                   $2,158,096             $1,775,837
Deduct:  Total stock-based employee
      compensation expense determined
      under fair value based
      method for all awards, net of
      related tax effects                      --                     --
                                           ----------             ----------
Pro forma net earnings                     $2,158,096             $1,775,837
                                           ==========             ==========

                                             Nine Months Ended September 30,
                                              2005                   2004
                                              ----                   ----
      Net earnings per common share:
        Basic - as reported                  $0.35                  $0.31
        Basic - pro forma                    $0.35                  $0.31
        Diluted - as reported                $0.35                  $0.31
        Diluted - pro forma                  $0.35                  $0.31

4.  Earnings  Per Share
     Basic  earnings per share  includes  Class A and Class C shares,  which are
     convertible on a 10-for-1 equivalent,  to Class A common stock outstanding.
     The  basic and  diluted  earnings  per share  amounts  were  calculated  as
     follows:

                                           Three Months Ended September 30,
                                             2005                  2004
                                             ----                  ----
Numerator:
      Net income                        $ 1,326,713            $   450,311
                                        ===========            ===========
Denominator:
      Denominator for basic
        earnings per share-weighted
        -average shares                   6,159,174              5,714,812
                                       ------------            -----------

      Effect of dilutive securities:
        Employee stock options                  168                  --
        Stock appreciation rights               577                   395
                                       ------------            ----------
      Dilutive potential common shares          745                   395
                                       ------------            ----------

      Denominator for diluted
        earnings per share-adjusted
        weighted-average shares and
        assumed conversions               6,159,919             5,715,207
                                        ===========           ===========

      Basic earnings per share                $0.22                  $.08
                                              =====                  ====

      Diluted earnings per share              $0.22                  $.08
                                              =====                  ====



<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2005 (Unaudited)

                                           Nine Months Ended September 30,
                                           2005                       2004
                                           ----                       ----
Numerator:
      Net income                        $2,158,096                 $1,775,837
                                        ==========                 ==========
Denominator:
      Denominator for basic earnings
        per share-weighted-average
        shares                           6,119,472                  5,686,157
                                       -----------                 ----------

      Effect of dilutive securities:
        Employee stock options              23,971                    111,590
        Stock appreciation rights              541                      1,497
                                      ------------                 ----------
      Dilutive potential common shares      24,512                    113,087
                                      ------------                 ----------
      Denominator for diluted
        earnings per share-adjusted
        weighted-average shares
        and assumed conversions         $6,143,984                  5,799,244
                                        ==========                 ==========

      Basic earnings per share               $0.35                      $0.31
                                             =====                      =====

      Diluted earnings per share             $0.35                      $0.31
                                             =====                      =====


<PAGE>
<TABLE>
<CAPTION>




            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2005, (Unaudited)

5.  Business Segment
                                Life           Cemetery/                     Reconciling
                              Insurance        Mortuary        Mortgage         Items        Consolidated
For the Three Months Ended
September 30, 2005
--------------------------
<S>                            <C>            <C>            <C>            <C>              <C>
   Revenues from
      external customers       $8,927,439     $2,796,506     $23,836,648    $         --     $35,560,593

   Intersegment revenues        1,297,110         30,668          92,743      (1,420,521)         --

   Segment profit (loss)
      before income taxes         470,689        (23,454)      1,508,229              --       1,955,464

For the Three Months Ended
September 30, 2004
--------------------------
   Revenues from
      external sources         $8,819,017     $3,172,449    $14,706,336$              --     $26,697,802

   Intersegment revenues        1,866,654         38,336          69,074      (1,974,064)         --

   Segment profit (loss)
      before income taxes         595,525        172,395        (390,852)             --         377,068

For the Nine Months Ended
September 30, 2005
-------------------------
   Revenues from
      external sources        $28,505,978     $9,130,423    $57,590,932 $             --     $95,227,333

   Intersegment revenues        3,666,646         69,003         255,783      (3,991,432)         --

   Segment profit (loss)
      before income taxes       1,806,834        398,433         715,047              --       2,920,314

   Identifiable assets        309,087,308     49,244,698      18,645,032     (52,398,603)    324,578,435

For the Nine Months Ended
September 30, 2004
-------------------------
   Revenues from
      external sources        $25,885,019     $9,628,455    $53,494,625$              --     $89,008,099

   Intersegment revenues        5,818,153         38,336         191,158      (6,047,647)         --

   Segment profit (loss)
      before income taxes       1,621,209        695,290        (111,738)             --       2,204,761

   Identifiable assets        306,437,782     46,140,543      18,258,337     (51,835,770)    319,000,892

</TABLE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2005, (Unaudited)


6.  Merger Transaction

Effective January 1, 2005,  Security National Life and SSLIC Holding Company,  a
wholly  owned  subsidiary  of  Security   National  Life,   completed  a  merger
transaction with Southern  Security Life Insurance  Company.  Under the terms of
the merger and  pursuant  to the  Agreement  and Plan of  Reorganization,  dated
August 25,  2004,  among  Security  National  Life,  SSLIC  Holding  Company and
Southern Security Life Insurance Company,  including the amendment thereto dated
December  27,  2004,  SSLIC  Holding  Company was merged with and into  Southern
Security Life Insurance  Company,  which resulted in (i) Southern  Security Life
Insurance  Company becoming a wholly-owned  subsidiary of Security National Life
Insurance Company,  and (ii) the unaffiliated  stockholders of Southern Security
Life Insurance Company,  holding an aggregate of 490,816 shares of common stock,
or 23.3% of the outstanding  shares,  becoming entitled to receive $3.84 in cash
for each issued and outstanding share of their common stock of Southern Security
Life Insurance Company, or an aggregate of $1,884,733.

As a result of the merger,  the  separate  existence  of SSLIC  Holding  Company
ceased  as  Southern  Security  Life  Insurance  Company  became  the  surviving
corporation of the merger. Southern Security Life Insurance Company continues to
be  governed  by the laws of the State of Florida,  and its  separate  corporate
existence  continues  unaffected by the merger. In addition,  as a result of the
merger,  Security  National Life owns all of the issued and  outstanding  common
shares of Southern Security Life Insurance Company.  Security National Financial
Corporation,  through its affiliates,  Security  National Life Insurance Company
and SSLIC  Holding  Company,  owned 76.7% of the  Company's  outstanding  common
shares prior to the merger.

The minority  shareholders  interest in assets and liabilities  were recorded at
book value.  Due to the purchase  price of the  minority  shares being less than
book  value,  there was a gain of  $1,678,463.  This gain was used to reduce the
Deferred  Acquisition  Costs by  $1,187,044  and Cost of  Insurance  Acquired by
$491,419.  Proforma disclosure  information,  as though the business combination
has been  completed  as of January 1, 2004,  has not been  included  because the
change would not have been material.

The purpose of the merger is to terminate the  registration  of the common stock
of Southern Security Life Insurance Company under the Securities Exchange Act of
1934 (by  reducing  the number of its  stockholders  of record to fewer than 300
stockholders)  and the  Nasdaq  listing  of the common  stock,  reduce  expenses
associated with such  registration and listing,  and provide the stockholders an
opportunity to sell their shares in an illiquid trading market without incurring
brokerage commissions. As a result of becoming a non-reporting company, Southern
Security Life Insurance  Company is no longer required to file periodic  reports
with the SEC,  including  among other  things,  annual  reports on Form 10-K and
quarterly  reports on Form  10-Q,  and is no longer  subject to the SEC's  proxy
rules.  In addition,  its common stock is no longer  eligible for trading on the
Nasdaq SmallCap Market.

7. Recent Accounting Pronouncements

In  January  2003,  the  Financial  Accounting  Standards  Board  (FASB)  issued
Interpretation  No.  46,   "Consolidation  of  Variable  Interest  Entities,  an
Interpretation  of ARB No.  51",  and  subsequently  issued a  revision  to this
Interpretation in December 2003. This Interpretation addresses the consolidation
by  business  enterprises  of  variable  interest  entities  as  defined  in the
Interpretation.  The Interpretation  applies to those variable interest entities
considered to be  special-purpose  entities no later than December 31, 2003. The
Interpretation  must also be applied to all other variable  interest entities no
later than March 31, 2005. The adoption of Interpretation  No. 46 did not have a
material impact on the Company's financial position or results of operations.



<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2005, (Unaudited)


In December 2004, FASB revised SFAS 123 to Share-Based  Payment ("SFAS 123(R)").
SFAS  123(R)  provides   additional  guidance  on  determining  whether  certain
financial   instruments   awarded  in  share-based   payment   transactions  are
liabilities.  SFAS  123(R)  also  requires  that  the  cost  of all  share-based
transactions be recorded in the financial statements.  The revised pronouncement
must be adopted by the Company by January 1, 2006. Implementation of SFAS 123(R)
will not have a  significant  impact  on the  Company's  consolidated  financial
statements in the period of  implementation.  However,  any future stock options
granted could have a significant impact on the Company's  consolidated financial
statements.

In June  2005,  the FASB  issued  SFAS No.  154,  Accounting  Changes  and Error
Corrections,  a replacement of APB Opinion No. 20, Accounting Changes,  and FASB
No. 3, Reporting Accounting Changes in Interim Financial  Statements.  Statement
154 applies to all voluntary  changes in accounting  principle,  and changes the
requirements  for  accounting  for  and  reporting  of a  change  in  accounting
principle.  Statement 154 requires  retrospective  application to prior periods'
financial  statements of a voluntary change in accounting principle unless it is
impracticable.  It is effective for accounting changes and corrections of errors
made in fiscal years beginning after December 15, 2005.  Earlier  application is
permitted for  accounting  changes and  corrections  of errors made occurring in
fiscal years beginning after June 1, 2005. The Company expects that the adoption
of SFAS 154 will not have a material impact on its financial statements.

8. Other Business Activities

The Company has determined that a marketing  employee of Security  National Life
Insurance  Company  has  embezzled  a total of $275,000  from the  Company.  The
Company's audit committee has conducted a formal investigation of the matter and
advised the  Company's  Board of Directors  and  registered  public  independent
accountants of the  embezzlement.  Management is in the process of attempting to
recover a portion of the embezzled funds. The Company has fidelity bond coverage
with a $50,000  deductible,  but there can be no assurance that the Company will
be successful in obtaining any recovery of the embezzled funds from the insurer.
The Company  has  accrued a  liability  of $200,000 in order to reflect the loss
that may occur from this  embezzlement  as well as potential  additional  losses
related to the employees mismanagement of the related business activity.

The  City of  Phoenix  has  commenced  condemnation  proceedings,  in  order  to
construct a light rail  facility on the  Camelback  Funeral Home  property.  The
condemnation has resulted in the cessation of funeral operations at Camelback on
January 1, 2005. The land  ($289,289) and building  ($390,480) are being carried
at December 31, 2004 book value pending  finalization  of the purchase  contract
and sale price, of which the City of Phoenix has placed $1,200,000 in escrow.

9. Subsequent Event

On September 23, 2005, the Company, through its subsidiaries,  Security National
Life Insurance  Company and Southern  Security Life Insurance  Company,  entered
into a stock purchase agreement with Memorial  Insurance Company of America,  an
Arkansas domiciled insurance company ("Memorial Insurance Company"), to purchase
all of the  outstanding  shares of common stock of Memorial  Insurance  Company.
Under the terms of the stock purchase  agreement,  the  shareholders of Memorial
Insurance  Company  will receive  $13,500,000  in  consideration  for all of the
outstanding common shares of Memorial  Insurance Company,  with each shareholder
to receive a pro rata share of the total  amount of the  purchase  consideration
based upon the number of shares such  shareholder  owns. The  shareholders  will
receive a total  $13,500,000  for their shares by means of  distributions,  with
Security  National Life Insurance  Company and Southern  Security Life Insurance
Company simultaneously  contributing  sufficient capital and surplus to Memorial
Insurance Company to maintain its status as an admitted insurer in good standing
in the state of Arkansas.


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2005, (Unaudited)


For federal and state tax purposes,  the  transaction  will be treated as a part
sale, part redemption of the Memorial Insurance Company stock. At the closing of
the transaction,  the shareholders of Memorial  Insurance  Company agree to sell
their  shares of Memorial  Insurance  Company  stock to Security  National  Life
Insurance  Company and Southern  Security Life  Insurance  Company,  such shares
representing  all of the  issued and  outstanding  stock of  Memorial  Insurance
Company,  free and  clear of all  liens,  claims,  and  encumbrances.  Following
completion of the transaction,  Memorial  Insurance Company will become a wholly
owned subsidiary of Southern Security Life Insurance Company.

As of December  31, 2004,  Memorial  Insurance  Company had 100,170  policies in
force and 50 agents.  For the year ended December 31, 2004,  Memorial  Insurance
Company had revenues of $4,893,000 and net income of $2,158,000.  As of December
31, 2004, the statutory assets and the capital and surplus of Memorial Insurance
Company were $45,048,000 and $12,303,000, respectfully.

Under the terms of the stock purchase  agreement,  the shareholders agree, where
applicable  following the closing of the  transaction,  to maintain any existing
policies from Memorial  Insurance Company that were previously sold through such
shareholders' funeral and mortuary businesses and to avoid replacing any of such
policies  with the  policies  of other  insurance  companies.  The  shareholders
further agree to use their  reasonable  best efforts to support the business and
operations  of Memorial  Insurance  Company,  including,  where  applicable,  to
maintain a business  relationship with Memorial  Insurance Company to the extent
such a business relationship existed prior to such closing.

Moreover,  Security  National Life Insurance  Company and Southern Security Life
Insurance Company agree to maintain the corporate offices of Memorial  Insurance
Company at its current location in Blytheville,  Arkansas. Furthermore, Security
National Life Insurance  Company and Southern  Security Life  Insurance  Company
agree to use their best  efforts,  following  the  closing,  to assist  Memorial
Insurance  Company in retaining the sales agents and brokers in its business and
operations.  Security National Life Insurance Company anticipates completing the
transaction  on or about  December 9, 2005.  The  obligations  to  complete  the
transaction  are  contingent  upon approval of the  transaction  by the Arkansas
Insurance Department.  A hearing has been scheduled on December 9, 2005 with the
commissioner  of the Arkansas  Insurance  Department  to consider the request by
Security  National Life Insurance  Company and Southern  Security Life Insurance
Company to approve the transaction.

At the closing of the transaction,  Security National Life Insurance Company and
Memorial  Insurance Company each agree to enter into a reinsurance  agreement to
reinsure the majority of the in force business of Memorial  Insurance Company to
Security National Life Insurance Company, as reinsurer,  to the extent permitted
by the Arkansas Insurance  Department.  The parties to the reinsurance agreement
will consist of Security  National Life Insurance  Company,  Memorial  Insurance
Company, and the Arkansas Insurance Department. The assets and liabilities to be
reinsured  under  the  reinsurance  agreement  shall be  deposited  into a trust
account,  in which Zions  Bancorporation,  a national banking  corporation,  has
agreed to act as trustee. Under the terms of the reinsurance  agreement,  in the
event of the  insolvency of Security  National  Life  Insurance  Company,  Zions
Bancorporation  will  transfer the assets and  liabilities  held in trust to the
Arkansas  Insurance  Department for purposes of the administration of the assets
and liabilities with respect to such insolvency.

On October 20,  2005,  Security  National  Life  Insurance  Company and Southern
Security Life Insurance  Company  submitted a Form A application to the Arkansas
Insurance  Department.  The Form A application  included a proposed  reinsurance
agreement and a trust  agreement that Security  National Life Insurance  Company
intends to enter into with Memorial Insurance Company and the Arkansas Insurance
Department.


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2005, (Unaudited)


Upon approval of the reinsurance agreement by the Arkansas insurance department,
certain insurance  business and operations of Memorial Insurance Company will be
transferred  to Security  National Life Insurance  Company,  as of the effective
date of the  reinsurance  agreement,  including  all policies in force as of the
effective  date  thereof,  except for  certain  policies.  Any future  insurance
business  by  Memorial  Insurance  Company  will be covered by this  reinsurance
agreement. It is anticipated that all of the business and operations of Memorial
Insurance  Company  will be  transferred  to Security  National  Life  Insurance
Company  under the terms of the  reinsurance  agreement,  except for capital and
surplus of approximately  $1,000,000.  Thus, it is estimated that  approximately
$30,091,000  in  assets  and  liabilities  will  be  transferred  from  Memorial
Insurance  Company to Security  National Life Insurance  Company pursuant to the
reinsurance agreement.

At the closing of the stock purchase  transaction,  Memorial  Insurance  Company
will issue a  $30,091,000  note to  Security  National  Life  Insurance  Company
payable,  together  with  accrued  interest,  within  30 days  from  the date of
issuance.  The note is to be repaid in cash or in  assets to be  transferred  to
Security National Life Insurance Company. The note will be secured by the assets
owned by  Memorial  Insurance  Company.  In  addition,  Southern  Security  Life
Insurance  Company will contribute  $2,200,000 to Memorial  Insurance Company at
closing in  consideration  for the surplus note. It is anticipated that Memorial
Insurance  Company  will repay the surplus note in early 2006 using the proceeds
from  the  sale  of the  investments  in  common  stocks  currently  held in its
investment portfolio.

10. Derivative Loan Commitments

In the third quarter 2005 the Company's mortgage banking activities  implemented
new  practices  as it relates to  interest  rate lock  commitments  and  forward
commitments  to sell  loans  to  third-party  investors.  The  Company  has also
implemented  a  hedging  strategy  for  these  transactions.   A  mortgage  loan
commitment  binds  the  Company  to lend  funds  to a  qualified  borrower  at a
specified  interest rate and within a specified period of time,  generally up to
30 days after  inception of the rate lock. Such a commitment is referred to as a
derivative  loan  commitment  if the loan that will result from  exercise of the
commitment  will be held  for  sale  under  Statement  of  Financial  Accounting
Standards  No. 133 ("SFAS  133"),  Accounting  for  Derivative  Instruments  and
Hedging Activities,  as amended by Statement of Financial  Accounting  Standards
No. 149 ("SFAS 149"),  Amendment of Statement 133 on Derivative  Instruments and
Hedging  Activities.  As such, loan commitments that are derivatives and have an
effective hedging strategy, must be recognized at fair value on the consolidated
balance  sheet  with  changes  in their fair  values  recorded  as part of other
comprehensive income from mortgage banking operations.

In determining  the fair value of its derivative  loan  commitments for economic
purposes,  the Company considers the value that would be generated when the loan
arising from exercise of the loan  commitment is sold to third party  investors.
That value consists of the price,  including  mortgage servicing release values,
that is expected upon the sale of the loans to third-party investors.

In estimating  their fair values,  the Company also assigns a  probability  to a
loan  commitment  based on an expectation  that it will not be exercised and the
loan will not be funded. This probability is commonly referred to as fallout.


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2005, (Unaudited)


The Company is exposed to price risk due to the  potential  impact of changes in
interest rates on the values of the derivative loan  commitments from the time a
derivative  loan  commitment  is made to an  applicant to the time the loan that
would result from the exercise of that loan commitment is funded. Managing price
risk is complicated by the fact that the ultimate  percentage of derivative loan
commitments  that will be exercised  (i.e.,  the number of loan commitments that
will be  funded)  fluctuates.  The  probability  that a loan  will not be funded
within  the  terms of the  commitment  is  driven  by a number  of  factors - in
particular, the change, if any, in mortgage rates subsequent to inception of the
rate  lock.  However,  many  borrowers  continue  to  exercise  derivative  loan
commitments even when interest rates have fallen.

In general,  the  probability  of funding  increases if mortgage  rates rise and
decreases  if  mortgage  rates  fall.  This  is due  primarily  to the  relative
attractiveness  of current mortgage rates compared to the applicant's  committed
rate.  The  probability  that a loan will not be funded  within the terms of the
derivative loan commitments also is influenced by the source of the applications
(retail, broker or correspondent  channels),  proximity to rate lock expiration,
purpose for the loan  (purchase or refinance)  product type and the  application
approval status.  The Company has developed  fallout  estimates using historical
observed  data  that  take  into  account  all  of the  variables,  as  well  as
renegotiations  of rate and point  commitments  that tend to occur when mortgage
rates fall.  These  fallout  estimates  are used to estimate the number of loans
that it expects to be funded within the terms of the derivative loan commitments
and are updated  periodically  to reflect the most current data.  Once a loan is
closed, it is classified as a loan receivable-held for sale.

The Company utilizes various  derivative  instruments to economically  hedge the
price  risk  associated  with  its  outstanding   derivative  loan  commitments.
Management  expects  these  derivatives  will  experience  changes in fair value
opposite to changes in fair value of the derivative  loan  commitments,  thereby
reducing earnings  volatility  related to the recognition in earnings of changes
in the values of the commitments. The instruments used to economically hedge the
fair  value of the  derivative  loan  commitments  include  forward  loan  sales
commitments  and  other  free-standing  derivatives  such as  options  and  U.S.
Treasury  futures.  A forward  loan sales  commitment  protects the Company from
losses on sales of the loans  arising from exercise of the loan  commitments  by
securing the ultimate  sales price and delivery  date of the loans.  The Company
takes into account  various factors and strategies in determining the portion of
the  mortgage   pipeline   (derivative  loan  commitments)  it  wants  to  hedge
economically.

Included in Other  Comprehensive  Income is the significant  components of these
transactions as follows:

        Gain on forward loan sale commitments    $1,259,000
        Gain on derivative loan commitments         227,000
                                                 ----------
                                                 $1,486,000
                                                 ==========

Item 2.  Management's Discussion and Analysis of Financial Condition and
         Results of Operations
         ---------------------------------------------------------------

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
traditional  whole-life  products;   (ii)  emphasis  on  cemetery  and  mortuary
business;  and  (iii)  capitalizing  on  historically  lower  interest  rates by
originating and refinancing mortgage loans.


<PAGE>

During the nine months ended  September  30, 2005,  Security  National  Mortgage
Company  ("SNMC")  experienced  an increase 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 the borrowers and other  secondary fee from third party
investors  who purchase  the loans from SNMC.  SNMC  primarily  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 9,421 ($1,516,694,000) and 8,790
($1,368,000,000)  loans,  respectively,  for the nine months ended September 30,
2005 and 2004.

Results of Operations

Third Quarter of 2005 Compared to Third Quarter of 2004
  (rounded to nearest thousand)

Total revenues  increased by $8,863,000,  or 33.2%, to $35,561,000 for the three
months ended  September 30, 2005,  from  $26,698,000  for the three months ended
September  30,  2004.  Contributing  to this  increase in total  revenues was an
increase of  $8,148,000  in mortgage fee income and an increase of $1,378,000 in
net investment income.

Insurance premiums and other  considerations  decreased by $79,000,  or 1.2%, to
$6,437,000 for the three months ended  September 30, 2005,  from  $6,516,000 for
the  comparable  period  in  2004.  This  decrease  was  primarily  due to fewer
insurance premiums that were realized on new insurance sales.

Net investment  income increased by $1,378,000,  or 33.6%, to $5,475,000 for the
three months ended September 30, 2005, from $4,097,000 for the comparable period
in 2004.  This  increase  was  primarily  attributable  to  additional  borrower
interest income from increased  long-term bond purchases and mortgage loans over
the comparable period in 2004.

Net mortuary and cemetery sales  decreased by $437,000,  or 15.0%, to $2,472,000
for  the  three  months  ended  September  30,  2005,  from  $2,909,000  for the
comparable  period in 2004.  This reduction in mortuary sales was due to reduced
pre-need  property  sales and the loss of sales from the Camel Back Funeral Home
as a result of the City of Phoenix having commenced condemnation  proceedings in
order to construct a light rail facility on the funeral home property.

Mortgage fee income  increased by $8,148,000,  or 63.1%,  to $21,056,000 for the
three months ended  September  30, 2005,  from  $12,908,000  for the  comparable
period in 2004.  This increase was primarily  attributable to an increase in the
number of loan originations  during the third quarter of 2005 due to the opening
of new offices and increased  production in exiting  offices,  which resulted in
the financing of a greater number of mortgage loans.

Total benefits and expenses were $33,605,000, or 94.5% of total revenues for the
three months ended  September 30 2005, as compared to  $26,321,000,  or 98.6% of
total revenues for the comparable  period in 2004. The higher margin in 2005 was
due to fixed expenses that did not increase  proportionally with the increase in
revenues.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy  benefits  increased by an aggregate of $184,000,  or 3.3%, to $5,845,000
for  the  three  months  ended  September  30,  2005,  from  $5,661,000  for the
comparable period in 2004. This increase was primarily the result of an increase
in death benefits.


<PAGE>


Amortization  of  deferred  policy  acquisition  costs  and  costs of  insurance
acquired  increased by $29,000,  or 4.5%, to $668,000 for the three months ended
September  30, 2005,  from  $639,000  for the  comparable  period in 2004.  This
increase was primarily due to the growth of policies in force.

General and  administrative  expenses  increased  by  $6,182,000,  or 32.7%,  to
$25,111,000 for the three months ended September 30, 2005, from  $18,929,000 for
the comparable period in 2004. This increase resulted primarily from an increase
in  commissions  due  to  the  additional   mortgage  loan   originations   that
SecurityNational Mortgage Company made during the third quarter of 2005.

Interest expense increased by $1,023,000, or 213.5%, to $1,502,000 for the three
months ended  September  30, 2005,  from $479,000 for the  comparable  period in
2004. This increase was primarily due to the increased use of warehouse lines of
credit required for the funding of loans by SecurityNational Mortgage Company.

Cost of goods and services sold of the mortuaries  and  cemeteries  decreased by
$133,000,  or 21.7%,  to $480,000 for the three months ended September 30, 2005,
from $613,000 for the comparable  period in 2004.  This reduction in the cost of
goods and services sold of the  mortuaries and cemeteries was due to the reduced
costs of at-need merchandise at the Company's  mortuaries and cemeteries and the
loss of sales from the Camelback Funeral Home as a result of the City of Phoenix
having  commenced  condemnation  proceedings  in order to construct a light rail
facility on the funeral home property.

Nine Months Ended September 30, 2005 Compared to Nine Months Ended September 30,
2004 (rounded to nearest thousand)

Total revenues  increased by  $6,219,000,or  7.0%, to  $95,227,000  for the nine
months ended  September  30, 2005,  from  $89,008,000  for the nine months ended
September  30,  2004.  Contributing  to this  increase in total  revenues  was a
$3,090,000  increase  in  mortgage  fee  income,  a  $3,023,000  increase in net
investment income, and a $1,013,000 increase in insurance premiums.

Insurance premiums and other considerations increased by $1,013,000, or 5.2%, to
$20,330,000 for the nine months ended  September 30, 2005, from  $19,317,000 for
the comparable period in 2004. This increase was primarily due to the additional
insurance premiums realized from new insurance sales.

Net investment income increased by $3,023,000,  or 25.4%, to $14,918,000 for the
nine months ended September 30, 2005, from $11,895,000 for the comparable period
in 2004.  This  increase  was  primarily  attributable  to  additional  borrower
interest income from increased  long-term bond purchases and mortgage loans over
the comparable period in 2004.

Net mortuary and cemetery  sales  decreased by $659,000,  or 7.4%, to $8,203,000
for the nine months ended September 30, 2005, from $8,862,000 for the comparable
period  in 2004.  This  reduction  in  mortuary  sales  was  primarily  due to a
reduction in pre-need  property  sales and the loss of sales from the  Camelback
Funeral Home as a result of the City of Phoenix  having  commenced  condemnation
proceedings  in order to  construct a light rail  facility  on the funeral  home
property.

Mortgage fee income  increased by $3,090,000,  or 6.4%, to  $51,322,000  for the
nine months ended September 30, 2005, from $48,232,000 for the comparable period
in 2004.  This increase was primarily  attributable to an increase in the number
of loan originations  during the first nine months of 2005 due to the opening of
new offices and increased production in existing offices,  which resulted in the
financing of a greater number of mortgage loans.

Total benefits and expenses were $92,307,000, or 96.9% of total revenues for the
nine months ended  September 30, 2005, as compared to  $86,803,000,  or 97.5% of
total revenues for the comparable  period in 2004. The higher margin in 2005 was
due to fixed expenses that did not increase  proportionally with the increase in
revenues.


<PAGE>



Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy benefits  increased by an aggregate of $831,000,  or 4.8%, to $18,164,000
for  the  nine  months  ended  September  30,  2005,  from  $17,333,000  for the
comparable period in 2004. This increase was primarily the result of an increase
in reserves for policyholders.

Amortization  of deferred  policy and  pre-need  acquisition  costs and costs of
insurance acquired decreased by $1,127,000, or 33.1%, to $2,277,000 for the nine
months ended September 30, 2005, from $3,404,000,  for the comparable  period in
2004.  This  decrease  was  primarily  due  to  recognition  of  improvement  in
persistency.

General  and  administrative  expenses  increased  by  $4,323,000,  or 6.9%,  to
$67,100,000 for the nine months ended September 30, 2005, from $62,777,000,  for
the comparable period in 2004. This increase resulted primarily from an increase
in  commissions  due  to  the  additional   mortgage  loan   originations   that
SecurityNational  Mortgage  Company made during the nine months ended  September
30, 2005.

Interest expense  increased by $1,633,000 or 106.1%,  to $3,172,000 for the nine
months ended September 30, 2005, from $1,539,000,  for the comparable  period in
2004. This increase was primarily due to the increased use of warehouse lines of
credit required for the funding of loans by SecurityNational Mortgage Company.

Cost of goods and services sold of the mortuaries  and  cemeteries  decreased by
$155,000, or 8.9%, to $1,595,000,  for the nine months ended September 30, 2005,
from $1,750,000 for the comparable period in 2004. This reduction in the cost of
goods and services sold of the  mortuaries and cemeteries was due to the reduced
costs of at-need merchandise at the Company's  mortuaries and cemeteries and the
loss of sales  from  the  Camelback  Funeral  Home,  as a result  of the City of
Phoenix having commenced condemnation  proceedings in order to construct a light
rail facility on the funeral home property.

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  the  warehousing  of  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  $76,698,000  as of September 30,
2005,  compared to $81,051,000 as of December 31, 2004.  This represents 50% and
45% of the total  insurance-related  investments  as of September 30, 2005,  and
December 31,

<PAGE>



2004,   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 nine  categories  used for rating bonds. At
September 30, 2005 and December 31, 2004, 2% ($1,664,000) and 2% ($1,659,000) 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 September 30,
2005,  and  December  31,  2004,  the life  insurance  subsidiary  exceeded  the
regulatory criteria.

The Company's total  capitalization  of  stockholders'  equity and bank debt and
notes  payable  was  $56,844,000  as of  September  30,  2005,  as  compared  to
$54,995,000  as of  December  31,  2004.  Stockholders'  equity as a percent  of
capitalization  increased  to 80%  as of  September  30,  2005,  from  76% as of
December 31, 2004.

Lapse  rates  measure the amount of  insurance  terminated  during a  particular
period.  The  Company's  lapse  rate for life  insurance  in 2004 was  9.0%,  as
compared  to a rate of 8.6 % for  2003.  The  2005  lapse  rate to date has been
approximately the same as 2004.

At September 30, 2005, $27,335,000 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 Disclosures about Market Risk

There have been no  significant  changes since the annual report Form 10-K filed
for the year ended December 31, 2004.

Item 4.   Controls and Procedures

a) Evaluation of disclosure controls and procedures

     Under  the  supervision  and  with  the   participation  of  the  Company's
management,  including its principal  executive officer and principal  financial
officer,  the Company evaluated the effectiveness of the design and operation of
its  disclosure  controls  and  procedures,  as defined in Rules  13a-15(e)  and
15d-15(e)  under the Securities  Exchange Act of 1934, as of September 30, 2005.
Based  on  this  evaluation,  the  Company's  principal  executive  officer  and
principal  financial officer concluded that, as of the end of the period covered
by this report, the Company's  disclosure controls and procedures were effective
and adequately designed to ensure that the information  required to be disclosed
by the Company in the reports it files or submits under the Securities  Exchange
Act of 1934 is recorded,  processed,  summarized  and  reported  within the time
periods specified in applicable rules and forms.


<PAGE>



b) Changes in internal controls over financial reporting

     During the quarter ended  September  30, 2005,  there has been no change in
the Company's  internal  control over  financial  reporting  that has materially
affected, or is reasonably likely to materially affect its internal control over
financial reporting.

                           Part II Other Information:

Item 1.        Legal Proceedings

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,  Inc.  delivered  to Lynn W.  Brown  six  stock  certificates
totaling  2,000 shares of its common  stock in 1970 and 1971.  Mr. Brown died in
1972.  It is also  asserted  that at the time the 2,000  shares  were issued and
outstanding,  the shares  represented a 2% ownership of Memorial Estates.  It is
further alleged that Mr. Brown was entitled to preemptive  rights and, 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 of his right to
purchase more stock.

It is further  asserted  that  Thomas has the right to the  transfer  of Brown's
shares  on the  books of  Security  National  Financial  Corporation  as well as
Memorial  Estates,  and  to the  restoration  of  Brown's  proportion  of  share
ownership in Memorial  Estates at the time of his death by issuance and delivery
to Thomas of sufficient shares of the Company's publicly traded and unrestricted
stock in exchange  for the 2,000  shares of Memorial  Estates  stock,  including
payment of all dividends from the date of Thomas's demand.  The formal discovery
cutoff was January 15, 2004. The Company has been verbally  informed that Thomas
will dismiss the case but such dismissal has not been  communicated  in writing.
Until the case is actually  dismissed,  the Company intends to vigorously defend
the matter,  including the assertion  that the statute of  limitations  bars the
claims in their entirety.

The Company  received a letter dated November 9, 2004 on behalf of Charles Hood,
who worked at Singing Hills Memorial Park in El Cajon, California.  He was hired
in April 2003 as a  groundskeeper  with his work concluding on October 30, 2003.
Mr. Hood claims that he wrote a letter to the  Company  outlining  his  concerns
regarding  the  operation of the cemetery and claims,  as a result,  that he was
terminated.  Even  though  he  recognizes  his  relationship  was as an  at-will
employee, Mr. Hood's claims against the Company include, but are not limited to,
wrongful  termination,  violation of labor laws,  whistleblower  retaliation and
infliction of emotional distress. The letter proposes a settlement in the amount
of $275,000.

On September  21, 2005,  Mr. Hood filed a complaint  against the Company and its
wholly owned  subsidiaries,  Singing Hills  Memorial Park and Memorial  Estates,
Inc.,  in the Superior  Court of the State of  California  for the County of San
Diego (Case No. GIE028978). The complaint includes causes of action for wrongful
termination  in violation of public  policy,  retaliation in violation of public
policy,  race  discrimination in violation of the California Fair Employment and
Housing Act, retaliation in violation of such act, and intentional infliction of
emotional  distress.  Damages,  including  punitive damages,  are sought with no
specific  amount set forth in the  complaint,  together  with  attorney's  fees,
interest  and costs of the  lawsuit.  The  Company  disputes  the  claims in the
complaint  and  asserts  that Mr.  Hood was not  wrongfully  terminated  but had
voluntarily quit as an employee of the Company.  Formal discovery has commenced.
The Company intends to vigorously defend against the action.


<PAGE>



The Company also  received a letter  dated  November 29, 2004 on behalf of Roger
Gornichec,  who the Company recognizes as having been an independent contractor.
The attorney who wrote the letter on behalf of Mr. Hood also wrote the letter on
behalf of Mr.  Gornichec.  Mr.  Gornichec  concluded  his  services  as an agent
selling  insurance in the spring of 2003 and his license to sell cemetery  plots
was not  renewed in the summer of 2004.  Mr.  Gornichec  asserts  that he was an
employee contrary to the Company's position.

The claims  made on behalf of Mr.  Gornichec  include,  but are not  limited to,
wrongful  termination  in violation  of public  policy,  misrepresentation,  age
discrimination,   whistle-blower   retaliation,   interference   with   economic
advantage,  breach of  contract,  breach of the  covenant of good faith and fair
dealing, and infliction of emotional distress. Mr. Gornichec also claims that he
is  owed a  certain  amount  from a  retirement  plan.  The  letter  proposes  a
settlement in the amount of $420,000.  Based on its  investigation,  the Company
believes that Mr. Gornichec was an independent contractor,  not an employee, and
that  the  claims  and the  settlement  amount  sought  are not  justified.  Mr.
Gornichec  also  filed  a  complaint  with  the  California  Department  of Fair
Employment and Housing.  He has obtained a right to sue letter but no litigation
has commenced.  If the matter is not resolved and litigation ensues, the Company
is prepared to vigorously defend the action.

The  Company is a defendant  in various  other legal  actions  arising  from the
normal  conduct of business.  Management  believes that none of the actions will
have a  material  effect on the  Company's  financial  position  or  results  of
operations. Based on management's assessment and legal counsel's representations
concerning the likelihood of unfavorable  outcomes, no amounts have been accrued
for the above claims in the consolidated financial statements.

Item 2.  Changes in Securities and Use of Proceeds

         None

Item 3.  Defaults Upon Senior Securities

         None

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

          At the annual stockholders meeting held on July 8, 2005, the following
          matters were acted upon: (i) seven  directors  consisting of George R.
          Quist, Scott M. Quist, J. Lynn Beckstead,  Jr., Charles L. Crittenden,
          Dr. Robert G. Hunter, H. Craig Moody and Norman G. Wilbur were elected
          to serve  until the next  annual  stockholders  meeting or until their
          respective  successors are elected and qualified (for George R. Quist,
          with Class A and Class C shares voting,  11,073,336 votes were cast in
          favor of election, no votes were cast against election, and there were
          22,106  abstentions;  for  Scott M.  Quist,  with  Class A and Class C
          shares  voting,  11,092,859  votes were cast in favor of election,  no
          votes were cast against  election,  and there were 2,583  abstentions;
          for J. Lynn  Beckstead,  Jr.,  with Class A shares  voting,  5,073,477
          votes  were cast in favor of  election,  no votes  were  cast  against
          election,   and  there  were  22,525   abstentions;   for  Charles  L.
          Crittenden,  with  Class A and Class C shares,  11,091,275  votes were
          cast in favor of election,  no votes were cast against  election,  and
          there were 4,167 abstentions;  for Dr. Robert G. Hunter,  with Class A
          and  Class C shares  voting,  11,092,160  votes  were cast in favor of
          election,  no votes  cast  against  election,  and  there  were  3,282
          abstentions; for H. Craig Moody, with Class A shares voting, 5,073,851
          votes were cast in favor of election,  no votes cast against election,
          and there were  22,151  abstentions;  and for Norman G.  Wilbur,  with
          Class A and Class C shares voting, 11,093,438 votes were cast in favor
          of election, no votes were cast against election, and there were 2,004
          abstentions);  and (ii) the appointment of Hansen,  Barnett & Maxwell,
          P.C. as the Company's registered pubic independent accountants for the
          fiscal year ending  December  31, 2005 was ratified  (with  11,093,475
          votes cast for appointment, 1,967 votes against appointment, and there
          were 28,714 abstentions).


<PAGE>



Item 5.  Other Information

          On September 23, 2005, the Company, through its subsidiaries, Security
          National Life Insurance  Company and Southern  Security Life Insurance
          Company,  entered  into  a  stock  purchase  agreement  with  Memorial
          Insurance Company of America,  an Arkansas domiciled insurance company
          ("Memorial  Insurance  Company"),  to purchase all of the  outstanding
          shares of common stock of Memorial Insurance Company.  Under the terms
          of  the  stock  purchase  agreement,   the  shareholders  of  Memorial
          Insurance Company will receive $13,500,000 in consideration for all of
          the outstanding common shares of Memorial Insurance Company, with each
          shareholder  to  receive a pro rata  share of the total  amount of the
          purchase   consideration   based  upon  the  number  of  shares   such
          shareholder  owns. The shareholders  will receive a total  $13,500,000
          for their shares by means of  distributions,  with  Security  National
          Life Insurance  Company and Southern  Security Life Insurance  Company
          simultaneously contributing sufficient capital and surplus to Memorial
          Insurance  Company to maintain  its status as an  admitted  insurer in
          good standing in the state of Arkansas.

          For federal and state tax purposes, the transaction will be treated as
          a part sale, part redemption of the Memorial  Insurance Company stock.
          At the  closing  of the  transaction,  the  shareholders  of  Memorial
          Insurance  Company  agree to sell their  shares of Memorial  Insurance
          Company stock to Security National Life Insurance Company and Southern
          Security Life Insurance Company,  such shares  representing all of the
          issued and outstanding stock of Memorial Insurance  Company,  free and
          clear of all liens, claims, and encumbrances.  Following completion of
          the transaction, Memorial Insurance Company will become a wholly owned
          subsidiary of Southern Security Life Insurance Company.

          As of  December  31,  2004,  Memorial  Insurance  Company  had 100,170
          policies in force and 50 agents. For the year ended December 31, 2004,
          Memorial  Insurance  Company had revenues of $4,893,000 and net income
          of $2,158,000.  As of December 31, 2004, the statutory  assets and the
          capital and surplus of Memorial Insurance Company were $45,048,000 and
          $12,303,000, respectfully.

          Under the  terms of the stock  purchase  agreement,  the  shareholders
          agree, where applicable  following the closing of the transaction,  to
          maintain any existing  policies from Memorial  Insurance  Company that
          were previously sold through such  shareholders'  funeral and mortuary
          businesses  and to  avoid  replacing  any of such  policies  with  the
          policies of other insurance companies.  The shareholders further agree
          to use their  reasonable  best  efforts to support  the  business  and
          operations of Memorial Insurance Company, including, where applicable,
          to maintain a business relationship with Memorial Insurance Company to
          the extent such a business relationship existed prior to such closing.

          Moreover,  Security  National  Life  Insurance  Company  and  Southern
          Security  Life  Insurance  Company  agree to  maintain  the  corporate
          offices of  Memorial  Insurance  Company at its  current  location  in
          Blytheville,  Arkansas. Furthermore,  Security National Life Insurance
          Company and Southern  Security  Life  Insurance  Company  agree to use
          their  best  efforts,   following  the  closing,  to  assist  Memorial
          Insurance  Company in  retaining  the sales  agents and brokers in its
          business and  operations.  Security  National Life  Insurance  Company
          anticipates  completing the  transaction on or about December 9, 2005.
          The  obligations  to complete  the  transaction  are  contingent  upon
          approval of the transaction by the Arkansas  Insurance  Department.  A
          hearing has been  scheduled on December 9, 2005 with the  commissioner
          of the  Arkansas  Insurance  Department  to  consider  the  request by
          Security  National Life Insurance  Company and Southern  Security Life
          Insurance Company to approve the transaction.


<PAGE>



          At the closing of the  transaction,  Security  National Life Insurance
          Company  and  Memorial  Insurance  Company  each agree to enter into a
          reinsurance  agreement  to  reinsure  the  majority  of the  in  force
          business  of Memorial  Insurance  Company to  Security  National  Life
          Insurance  Company,  as  reinsurer,  to the  extent  permitted  by the
          Arkansas  Insurance   Department.   The  parties  to  the  reinsurance
          agreement will consist of Security  National Life  Insurance  Company,
          Memorial Insurance Company, and the Arkansas Insurance Department. The
          assets and liabilities to be reinsured under the reinsurance agreement
          shall  be   deposited   into  a  trust   account,   in   which   Zions
          Bancorporation,  a national banking corporation,  has agreed to act as
          trustee. Under the terms of the reinsurance agreement, in the event of
          the  insolvency of Security  National Life  Insurance  Company,  Zions
          Bancorporation  will transfer the assets and liabilities held in trust
          to  the   Arkansas   Insurance   Department   for   purposes   of  the
          administration  of the assets  and  liabilities  with  respect to such
          insolvency.

          On October 20, 2005,  Security  National  Life  Insurance  Company and
          Southern   Security  Life  Insurance   Company   submitted  a  Form  A
          application  to  the  Arkansas  Insurance   Department.   The  Form  A
          application  included a  proposed  reinsurance  agreement  and a trust
          agreement  that Security  National Life Insurance  Company  intends to
          enter into with Memorial  Insurance Company and the Arkansas Insurance
          Department.

          Upon approval of the reinsurance  agreement by the Arkansas  insurance
          department,  certain  insurance  business and  operations  of Memorial
          Insurance  Company  will be  transferred  to  Security  National  Life
          Insurance  Company,  as of  the  effective  date  of  the  reinsurance
          agreement,  including all policies in force as of the  effective  date
          thereof, except for certain policies. Any future insurance business by
          Memorial  Insurance  Company  will  be  covered  by  this  reinsurance
          agreement.  It is anticipated  that all of the business and operations
          of Memorial Insurance Company will be transferred to Security National
          Life Insurance  Company under the terms of the reinsurance  agreement,
          except for capital and surplus of approximately  $1,000,000.  Thus, it
          is estimated that approximately  $30,091,000 in assets and liabilities
          will be  transferred  from  Memorial  Insurance  Company  to  Security
          National Life Insurance Company pursuant to the reinsurance agreement.

          At the closing of the stock purchase  transaction,  Memorial Insurance
          Company  will  issue a  $30,091,000  note to  Security  National  Life
          Insurance Company payable,  together with accrued interest,  within 30
          days from the date of issuance. The note is to be repaid in cash or in
          assets to be transferred to Security National Life Insurance  Company.
          The note will be  secured by the assets  owned by  Memorial  Insurance
          Company.  In addition,  Southern  Security Life Insurance Company will
          contribute  $2,200,000  to  Memorial  Insurance  Company at closing in
          consideration  for the surplus note. It is  anticipated  that Memorial
          Insurance  Company will repay the surplus note in early 2006 using the
          proceeds from the sale of the  investments in common stocks  currently
          held in its investment portfolio.

          The  Company  has  determined  that a  marketing  employee of Security
          National Life Insurance Company has embezzled a total of $275,000 from
          the Company.  The  Company's  audit  committee  has conducted a formal
          investigation  of the  matter  and  advised  the  Company's  Board  of
          Directors  and  registered  public  independent   accountants  of  the
          embezzlement.  Management is in the process of attempting to recover a
          portion of the embezzled funds. The Company has fidelity bond coverage
          with a $50,000  deductible,  but there  can be no  assurance  that the
          Company will be  successful in obtaining any recovery of the embezzled
          funds from the insurer.


<PAGE>



Item 6.        Exhibits and Reports on Form 8-K

 (a)  Exhibits:
      3.1. Articles of Restatement of Articles of Incorporation (7) 3.2.
           Amended Bylaws (10)
      4.1. Specimen Class A Stock Certificate (1) 4.2. Specimen Class C Stock
           Certificate (1)
      4.3  Specimen Preferred Stock Certificate and Certificate of Designation
           of Preferred Stock (1)
     10.1  Restated and Amended Employee Stock Ownership Plan and  Trust
           Agreement (1)
     10.2  1993 Stock Option Plan (3)
     10.3  2000 Director Stock Option Plan (4)
     10.4  2003 Stock Option Plan (9)
     10.5  Deferred Compensation Agreement with George R. Quist (2)
     10.6  Promissory Note with George R. Quist (5)
     10.7  Deferred Compensation Plan (6)
     10.8  Coinsurance Agreement between Security National Life and Acadian (7)
     10.9  Assumption Agreement among Acadian, Acadian Financial Group, Inc.,
           Security National Life and the Company (7)
    10.10  Asset Purchase Agreement among Acadian, Acadian Financial Group,
           Inc., Security National Life and the Company (7)
    10.11  Promissory Note with Key Bank of Utah (8)
    10.12  Loan and Security Agreement with Key Bank of Utah (8)
    10.13  Stock Purchase and Sale Agreement with Ault Glazer & Co. Investment
           Management LLC (10)
    10.14  Stock Purchase Agreement with Paramount Security Life Insurance
           Company (11)
    10.15  Reinsurance Agreement between Security National Life Insurance
           Company and Guaranty Income Life Insurance Company (12)
    10.16  Employment agreement with J. Lynn Beckstead, Jr. (12)
    10.17  Employment agreement with Scott M. Quist
    10.18  Agreement and Plan of  Reorganization  among Security  National Life
           Insurance  Company,  SSLIC Holding Company,  and Southern Security
           Life Insurance Company (14)
    10.19  Agreement and Plan of Merger among Security  National Life Insurance
           Company,  SSLIC Holding Company,  and Southern  Security Life
           Insurance Company (15)
    10.20  Agreement to repay indebtedness and to convey option with Monument
           Title, LC.
    10.21  Stock Purchase Agreement with Memorial Insurance Company of America
           and the Shareholders of Memorial Insurance Company that have
           executed the Agreement by Shareholders of Memorial Insurance Company
           of America to Sell Shares in Stock Purchase Transaction (16)
    22     Subsidiaries of the Registrant

           Certification pursuant to 18 U.S.C. Section 1350 as enacted by
           Section 302 of the Sarbanes-Oxley Act of 2002 Certification
           pursuant to 18 U.S.C. Section 1350 as enacted by Section 302 of
           the Sarbanes-Oxley Act of 2002 Certification pursuant to 18 U.S.C.
           Section 1350, as adopted pursuant to Section 906 of the
           Sarbanes-Oxley Act of 2002 Certification pursuant to 18 U.S.C.
           Section 1350, as adopted pursuant to Section 906 of the
           Sarbanes-Oxley Act of 2002
------------------


<PAGE>


      (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 Schedule 14A Definitive Proxy
           Statement, filed August 29, 2000, relating to the Company's Annual
           Meeting of Shareholders
      (5)  Incorporated by reference from Annual Report on Form 10-K, as filed
           on April 16, 2001
      (6)  Incorporated by reference from Annual Report on Form 10-K, as filed
           on April 3, 2002
      (7)  Incorporated by reference from Report on Form 8-K-A as filed on
           January 8, 2003
      (8)  Incorporated by reference from Annual Report on Form 10-K, as filed
           on April 15, 2003
      (9)  Incorporated by reference from Schedule 14A Definitive Proxy
           Statement, Filed on June 5, 2003 relating to the Company's Annual
           Meeting of Shareholders
     (10)  Incorporated by reference from Report on Form 10-Q, as filed on
           November 14, 2003
     (11)  Incorporated by reference from Report on Form 8-K, as filed on
            March 30, 2004
     (12)  Incorporated by reference from Report on Form 10-K, as filed on
           March 30, 2004
     (13)  Incorporated by reference from Report on Form 10-Q, as filed on
           August 13, 2004
     (14)  Incorporated by reference from Report on Form 8-K, as filed on
           August 30, 2004
     (15)  Incorporated by reference from Report on Form 10-K, as filed on
           April 15, 2005
     (16)  Incorporated by reference from Report on Form 8-K, as filed on
           September 28, 2005

Subsidiaries of the Registrant

    (b) Reports on Form 8-K:

          Incorporated  by reference from Report on Form 8-K, as filed on August
          11, 2005  Incorporated  by reference from Report on Form 8-K, as filed
          on September 28, 2005


<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: November 14, 2005              By: George R. Quist,
                                          ----------------
                                          Chairman of the Board and Chief
                                          Executive Officer
                                          (Principal Executive Officer)


DATED: November 14, 2005              By: Stephen M. Sill
                                          ---------------
                                          Vice President, Treasurer and
                                          Chief Financial Officer
                                          (Principal Financial and
                                           Accounting Officer)


<PAGE>


                                  Exhibit 31.1

                            CERTIFICATION PURSUANT TO
                               18 U.S.C. ss. 1350,
                                  AS ENACTED BY
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, George R. Quist, certify that:

1. I have  reviewed  this  quarterly  report on Form 10-Q of  Security  National
Financial Corporation.

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officers  and  I are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15-d-15(e)) for the registrant to have:

     (a)  Designed  such  disclosure  controls  and  procedures,  or caused such
disclosure  controls and  procedures to be designed  under our  supervision,  to
ensure that  material  information  relating to the  registrant,  including  its
consolidated subsidiaries,  is made known to us by others within those entities,
particularly during the period covered in which this report is being prepared;

     (b) Evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions  about the effectiveness
of the disclosure  controls and procedures,  as of the end of the period covered
by this report based on such evaluation; and

     (c)  Disclosed  in this  report  any  change in the  registrant's  internal
control over financial  reporting  that occurred  during the  registrant's  most
recent fiscal quarter (the registrant's  fourth fiscal quarter in the case of an
annual  report)  that  has  materially  affected,  or is  reasonably  likely  to
materially affect, the registrant's  internal control over financial  reporting;
and

5. The registrant's other certifying officers and I have disclosed, based on our
most recent  evaluation of internal  control over  financial  reporting,  to the
registrant's auditors and the audit committee of registrant's board of directors
(or persons performing the equivalent functions):


     (a) All significant  deficiencies and material  weaknesses in the design or
operation of internal  control over  financial  reporting  which are  reasonably
likely  to  adversely  affect  the  registrant's  ability  to  record,  process,
summarize and report financial information; and

     (b) Any fraud,  whether or not material,  that involves management or other
employees who have a significant role in the registrant's internal controls over
financial reporting.

Date:    November 14, 2005

                                            By:      George R. Quist
                                                     Chairman of the Board and
                                                     Chief Executive Officer


<PAGE>


                                  Exhibit 31.2

                            CERTIFICATION PURSUANT TO
                               18 U.S.C. ss. 1350,
                                  AS ENACED BY
                  SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002


I, Stephen M. Sill, certify that:

1. I have  reviewed  this  quarterly  report on Form 10-Q of  Security  National
Financial Corporation.

2. Based on my  knowledge,  this  quarterly  report  does not contain any untrue
statement of a material fact or omit to state a material fact  necessary to make
the statements made, in light of the  circumstances  under which such statements
were made, not  misleading  with respect to the period covered by this quarterly
report;

3.  Based  on my  knowledge,  the  financial  statements,  and  other  financial
information  included in this quarterly  report,  fairly present in all material
respects the financial  condition,  results of operations  and cash flows of the
registrant as of, and for, the periods presented in this quarterly report;

4.  The  registrant's  other  certifying  officer  and  I  are  responsible  for
establishing and maintaining  disclosure  controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15-d-15(e)) for the registrant to have:

     (a)  Designed  such  disclosure  controls  and  procedures,  or caused such
disclosure  controls and  procedures to be designed  under our  supervision,  to
ensure that  material  information  relating to the  registrant,  including  its
consolidated subsidiaries,  is made known to us by others within those entities,
particularly during the period covered in which this report is being prepared;

     (b) Evaluated the effectiveness of the registrant's disclosure controls and
procedures and presented in this report our conclusions  about the effectiveness
of the disclosure  controls and procedures,  as of the end of the period covered
by this report based on such evaluation; and

     (c)  Disclosed  in this  report  any  change in the  registrant's  internal
control over financial  reporting  that occurred  during the  registrant's  most
recent fiscal quarter (the registrant's  fourth fiscal quarter in the case of an
annual  report)  that  has  materially  affected,  or is  reasonably  likely  to
materially affect, the registrant's  internal control over financial  reporting;
and

5. The registrant's other certifying officers and I have disclosed, based on our
most recent  evaluation  of internal  control  over  financial  reporting to the
registrant's auditors and the audit committee of registrant's board of directors
(or persons performing the equivalent functions):

     (a) All significant  deficiencies and material  weaknesses in the design or
operation of internal  control over  financial  reporting  which are  reasonably
likely  to  adversely  affect  the  registrant's  ability  to  record,  process,
summarize and report financial information; and

     (b) Any fraud,  whether or not material,  that involves management or other
employees who have a significant role in the registrant's internal controls over
financial reporting.

Date:    November 14, 2005

                                        By:      Stephen M. Sill
                                                 Vice President, Treasurer and
                                                 Chief Financial Officer


<PAGE>



                                  EXHIBIT 32.1
                            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 10-Q for the period  ending  September 30,
2005, as filed with the  Securities  and Exchange  Commission on the date hereof
(the  "Report"),  I, George R. Quist,  Chairman of the Board and 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.

Date:    November 14, 2005

                                         By:      George R. Quist
                                                  Chairman of the Board and
                                                  Chief Executive Officer


                                  EXHIBIT 32.2
                            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 10-Q for the period  ending  September 30,
2005, as filed with the  Securities  and Exchange  Commission on the date hereof
(the  "Report"),  I,  Stephen  M.  Sill,  Vice  President,  Treasurer  and 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.

Date:    November 14, 2005

                                       By:      Stephen M. Sill
                                                Vice President, Treasurer and
                                                Chief Financial Officer