SECURITIES AND EXCHANGE COMMISSION
                                WASHINGTON, D.C.

                                    FORM 10-Q

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



For Quarter Ended June 30, 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                     5,441,713
-------------------------------------                  --------------
         Title of Class                               Number of Shares
                                               Outstanding as of June 30, 2005


Class C Common Stock, $.20 par value                      6,380,197
------------------------------------                  --------------
         Title of Class                               Number of Shares
                                               Outstanding as of June 30, 2005


<PAGE>


                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES

                                    FORM 10-Q

                           QUARTER ENDED JUNE 30, 2005

                                TABLE OF CONTENTS


                         PART I - FINANCIAL INFORMATION


<TABLE>
<CAPTION>

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

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

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

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

          Notes to Condensed Consolidated Financial
          Statements (unaudited)........................................7-12


Item 2    Management's Discussion and Analysis of Financial Condition
          and Results of Operations.....................................12-15

Item 3    Quantitative and Qualitative Disclosures about Market Risk.......15
------

Item 4    Controls and Procedures..........................................16
------

                           PART II - OTHER INFORMATION

            Other Information...........................................16-20

            Signature Page.................................................21

            Certifications..............................................22-24

</TABLE>

<PAGE>

<TABLE>
<CAPTION>

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

                                                         Six Months Ended                      Three Months Ended
                                                             June 30,                               June 30,
Revenues:                                          2005                 2004                 2005              2004
--------                                           ----                 ----                 ----              ----
<S>                                             <C>                  <C>                  <C>              <C>
Insurance premiums and other
   considerations                               $13,892,729          $12,800,139          $6,712,209        $ 6,403,965
Net investment income                             9,443,101            7,798,307           5,097,838          4,242,060
Net mortuary and cemetery sales                   5,731,184            5,952,887           2,845,816          2,896,482
Realized gains on investments
    and other assets                                 23,314                5,323                (376)           --
Mortgage fee income                              30,266,092           35,323,455          17,094,986         17,254,725
Other                                               310,320              430,186              93,583            240,148
                                               ------------         ------------         -----------       ------------
   Total revenues                                59,666,740           62,310,297          31,844,056         31,037,380
                                               ------------         ------------         -----------       ------------

Benefits and expenses:
Death benefits                                    6,425,475            6,898,118           2,909,547          3,125,167
Surrenders and other policy benefits                822,877              771,173             353,510            291,334
Increase in future policy benefits                5,070,915            4,003,080           2,442,725          2,134,348
Amortization of deferred policy and
   pre-need acquisition costs and costs of
   insurance acquired                             1,609,041            2,764,792             776,839          1,565,517
General and administrative expenses:
   Commissions                                   24,325,620           26,800,161          13,728,756         12,593,105
   Salaries                                       7,748,483            7,307,930           3,935,749          3,726,286
   Other 9,915,402                                9,740,440            5,399,279           5,047,561
Interest expense                                  1,669,121            1,059,566           1,027,433            694,243
Cost of goods and services
   sold of the mortuaries and
      cemeteries                                  1,114,956            1,137,344             567,116            539,812
                                              -------------        -------------       -------------     --------------
   Total benefits and expenses                   58,701,890           60,482,604          31,140,954         29,717,373
                                               ------------         ------------         -----------       ------------

Earnings before income taxes                        964,850            1,827,693             703,102          1,320,007
Income tax expense                                 (133,467)            (525,872)           (151,627)          (397,754)
Minority interest                                   --                    23,705             --                   1,691
                                        -------------------       --------------   -----------------    ---------------
      Net earnings                             $    831,383          $ 1,325,526         $   551,475      $     923,944
                                               ============          ===========         ===========      =============

Net earnings per common share                          $.14                 $.23                $.09               $.16
                                                       ====                 ====                ====               ====
Weighted average outstanding
   common shares                                  6,079,725            5,656,575           6,079,732          5,662,761
                                                ===========          ===========         ===========        ===========

Net earnings per common share
   -assuming dilution                                  $.14                 $.23                $.09               $.16
                                                       ====                 ====                ====               ====
Weighted average outstanding
   common shares assuming-dilution                6,104,244            5,793,655           6,081,740          5,716,048
                                                ===========          ===========         ===========        ===========

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


<PAGE>


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



                                                       June 30,    December 31,
Assets:                                                 2005          2004
-------                                                 ----          ----
Insurance-related investments:
Fixed maturity securities held
  to maturity, at amortized cost                 $ 65,627,473      $69,984,761
Fixed maturity securities available for sale,
  at market                                        10,845,973       11,066,025
Equity securities available for sale,
  at market                                         4,054,597        4,166,769
Mortgage loans on real estate and construction
  loans, net of allowance for losses               72,844,399       65,831,586
Real estate, net of accumulated depreciation
  and allowances for losses                        10,957,015        9,709,129
Policy, student and other loans                    12,492,048       13,312,471
Short-term investments                              4,884,120        4,628,999
                                                -------------    -------------
     Total insurance-related investments          181,705,625      178,699,740
                                                -------------    -------------
Restricted assets of cemeteries and mortuaries      5,328,534        5,176,463
                                                -------------    -------------
Cash                                               15,303,124       15,333,668
                                                 ------------    -------------
Receivables:
  Trade contracts                                   5,696,963        5,333,891
  Mortgage loans sold to investors                 44,825,218       47,167,150
  Receivable from agents                            1,447,273        1,416,211
  Receivable from officers                              --              1,540
  Other                                             1,380,044        1,120,157
                                                  -----------    -------------
     Total receivables                             53,349,498       55,038,949
  Allowance for doubtful accounts                  (1,209,225)      (1,302,368)
                                                  -----------    -------------
     Net receivables                               52,140,273       53,736,581
                                                  -----------    -------------
Policyholder accounts on deposit with reinsure      6,627,800        6,689,422
Cemetery land and improvements held for sale        8,482,500        8,547,764
Accrued investment income                           1,999,619        1,743,721
Deferred policy and pre-need contract
   acquisition costs                               21,931,279       20,181,818
Property and equipment, net                        10,652,498       10,520,665
Cost of insurance acquired                         13,023,414       14,053,497
Excess of cost over net assets
  of acquired subsidiaries                            683,191          683,191
Other                                                 850,840        1,107,230
                                                 ------------    -------------
     Total assets                                $318,728,697     $316,473,760
                                                 =============   =============


See accompanying notes to condensed consolidated financial statements.


<PAGE>


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

                                                                   December 31,
                                                June 30, 2005         2004
                                                -------------      ------------
Liabilities:
Future life, annuity, and
  other policy benefits                          $227,768,295     $224,529,539
Unearned premium reserve                            2,699,308        2,254,991
Bank loans payable                                  9,569,523       10,442,106
Notes and contracts payable                         2,448,296        2,888,539
Deferred pre-need cemetery and funeral
  contract revenues                                10,837,851       10,762,357
Accounts payable                                    1,217,583        1,064,269
Funds held under reinsurance treaties               1,155,864        1,184,463
Other liabilities and accrued expenses              9,036,066        6,371,343
Income taxes                                       11,625,627       11,497,967
                                                -------------    -------------
     Total liabilities                            276,358,413      270,995,574
                                                -------------    -------------

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

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

Stockholders' Equity:
Common stock:
  Class A: $2 par value, authorized
         10,000,000 shares, issued
         6,756,788 shares in 2005
         and 6,755,870 shares in 2004              13,513,576       13,511,740
  Class C:  convertible, $0.20 par value,
         authorized 7,500,000 shares,
         issued 6,459,300 shares in 2005
         and 6,468,199 shares in 2004               1,291,860        1,293,641
                                                 -------------    -------------
     Total common stock                            14,805,436       14,805,381
Additional paid-in capital                         14,922,882       14,922,851
Accumulated other comprehensive (loss)
  and other items, net of deferred taxes             (137,299)         (11,352)
Retained earnings                                  16,196,564       15,365,259
Treasury stock at cost ( 1,315,075 Class A shares
     and 79,103 Class C shares in 2005;
     1,315,075 Class A shares and 79,103
     Class C shares in 2004, held
     by affiliated companies)                      (3,417,299)      (3,417,299)
                                                -------------    -------------
     Total stockholders' equity                    42,370,284       41,664,840
                                                -------------    -------------
         Total liabilities and
           stockholders' equity                  $318,728,697     $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)

                                                    Six Months Ended June 30,
                                                  2005                2004
                                                  ----                ----
Cash flows from operating activities:
      Net cash provided by (used in)
       operating activities                      $9,009,802     $46,943,004
                                               ------------    ------------

Cash flows from investing activities:
  Securities held to maturity:
      Purchase - fixed maturity securities       (2,482,355)    (29,806,585)
      Calls and maturities - fixed
         maturity securities                      6,741,875       5,653,378
   Securities available for sale:
      Sales - equity securities                      (7,009)        655,000
   Purchases of short-term investments           (9,439,274)    (20,986,578)
   Sales of short-term investments                9,184,153      18,296,490
   Purchases of restricted assets                  (113,859)       (179,822)
   Mortgage, policy, and other loans made       (39,974,165)    (37,985,756)
   Payments received for mortgage,
      policy, and other loans                    33,568,539      18,547,403
   Purchases of property and equipment           (1,025,081)       (620,589)
   Purchases of real estate                      (2,787,026)     (1,655,862)
   Cash paid for purchase of subsidiary                  --        (304,042)
   Sale of real estate                            1,352,071         232,444
                                               ------------    ------------

         Net cash (used in) provided by
         investing activities                    (4,982,131)    (48,154,519)
                                               ------------    ------------

Cash flows from financing activities:
   Annuity and pre-need contract receipts         2,895,516       2,655,402
   Annuity and pre-need contract withdrawals     (4,834,366)     (5,245,367)
   Repayment of bank loans and notes and
      contracts payable                          (2,119,365)     (2,270,147)
                                               ------------    ------------

      Net cash used in financing activities      (4,058,215)     (4,860,112)
                                               ------------    ------------
Net change in cash                                  (30,544)     (6,071,627)

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

Cash at end of period                           $15,303,124     $13,632,731
                                               ============    ============





See accompanying notes to condensed consolidated financial statements.


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                            June 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 six months  ended June 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 six months  ended June 30,  2005 and 2004,  total  comprehensive  income
amounted to $705,436 and $1,473,194, respectively.

For the three months ended June 30, 2005 and 2004,  total  comprehensive  income
amounted to $625,380 and $769,711, 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 six months ended June 30, 2005 and 2004
would have been reduced by the following:

                                                     Six Months Ended June 30,
                                                     2005                 2004
                                                     ----                 ----
Net earnings as reported                           $831,383          $1,325,526
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                              $831,383         $1,325,526
                                                    ========         ==========


<PAGE>


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

                                                Six Months Ended June 30,
                                            2005                    2004
                                            ----                    ----
Net earnings per common share:
  Basic - as reported                       $.14                   $.22
  Basic - pro forma                         $.14                   $.22
  Diluted - as reported                     $.14                   $.22
  Diluted - pro forma                       $.14                   $.22

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:

                                                       Six Months Ended June 30,
                                                       2005               2004
                                                       ----               ----
Numerator:
      Net income                                    $  831,383       $1,325,526
                                                    ==========       ==========
Denominator:
      Denominator for basic earnings per share-
        weighted-average shares                      6,079,732        5,656,575
                                                    ----------       ----------

      Effect of dilutive securities:
        Employee stock options                          23,971          135,496
        Stock appreciation rights                          541            1,584
                                                    ----------       ----------
      Dilutive potential common shares                  24,512          137,080
                                                    ----------       ----------
      Denominator for diluted earnings per
      share-adjusted weighted-average
      shares and  assumed conversions                6,104,244        5,793,655
                                                   ===========       ==========

      Basic earnings per share                            $.14             $.23
                                                          ====             ====

      Diluted earnings per share                          $.14             $.23
                                                          ====             ====

                                                     Three Months Ended June 30,
                                                     2005                2004
                                                     ----                ----
Numerator:
      Net income                                     $ 551,475       $  923,944
                                                     =========        =========
Denominator:
      Denominator for basic earnings per share-
        weighted-average shares                      6,079,725        5,662,761
                                                    ----------       ----------

      Effect of dilutive securities:
        Employee stock options                           1,714           52,007
        Stock appreciation rights                          301            1,280
                                                   -----------       ----------
      Dilutive potential common shares                   2,015           53,287
                                                   -----------       ----------

      Denominator for diluted earnings per
      share-adjusted weighted-average
      shares and assumed conversions                 6,081,740        5,716,048
                                                   ===========       ==========

      Basic earnings per share                            $.09             $.16
                                                          ====             ====

      Diluted earnings per share                          $.09             $.16
                                                          ====             ====
<PAGE>
<TABLE>
<CAPTION>

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

5.  Business Segment
                                        Life             Cemetery/                            Reconciling
                                      Insurance          Mortuary           Mortgage             Items        Consolidated
For the Six Months Ended
June 30, 2005
   <S>                              <C>               <C>                 <C>                <C>              <C>
   Revenues from
      external customers            $ 19,578,539      $ 6,333,917         $33,754,284$           --           $ 59,666,740

   Intersegment revenues               2,422,236           38,335             163,040         (2,623,611)           --

   Segment profit (loss)
      before income taxes              1,336,145          421,887            (793,182)           --                964,850

   Identifiable assets               306,689,139       48,786,278          15,123,942        (51,870,626)      318,728,697

For the Six Months Ended
June 30, 2004
   Revenues from
      external customers           $ 17,066,002       $ 6,456,006         $38,788,289$          --            $ 62,310,297

   Intersegment revenues              4,149,885           --                  122,084         (4,271,969)          --

   Segment profit (loss)
      before income taxes             1,025,684           522,895             279,114          --                1,827,693

   Identifiable assets              305,703,959        45,689,540          18,995,687        (51,073,824)      319,315,362

For the Three Months Ended
June 30, 2005
   Revenues from
      external customers           $  9,522,023       $ 3,140,844         $19,181,189$          --            $ 31,844,056

   Intersegment revenues              1,173,478            15,334              83,639         (1,272,451)          --

   Segment profit (loss)
      before income taxes               698,306            67,689             (62,893)           --                703,102

For the Three Months Ended
June 30, 2004
   Revenues from
      external customers           $  8,708,779       $ 3,229,620         $19,098,981$         --             $ 31,037,380

   Intersegment revenues              1,776,872           --                   64,780         (1,841,652)          --

   Segment profit (loss)
      before income taxes               592,481           175,146             552,380           --               1,320,007

</TABLE>

<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                           June 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
                           June 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.

8.       Other Business Activities

The Company has determined that a marketing  employee of Security  National Life
Insurance  Company  has  embezzled  a total of $258,637  from the  Company.  The
Company's audit committee is in the process of conducting 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
properly reflect the loss that may occur as a result of this matter.

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 July 22,  2005,  the Company  entered  into a letter of intent with  Memorial
Insurance  Company  of  America  ("Memorial  Insurance  Company"),  an  Arkansas
domiciled insurance company, to purchase all of the outstanding shares of common
stock of Memorial  Insurance  Company.  Under the terms of the letter of intent,
the  stockholders of Memorial  Insurance  Company are to receive  $13,500,000 in
consideration  for all of the  outstanding  common shares of Memorial  Insurance
Company, with each stockholder to receive a prorata share of the total amount of
the purchase consideration.  The stockholders are to receive a total $13,500,000
for their  shares  by means of  capital  distributions,  stock  purchase,  stock
buyback, or similar transactions,  with the 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.

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.

Contemporaneously  with the completion of the transaction  with the stockholders
of Memorial Insurance Company,  the letter of intent requires Memorial Insurance
Company to  coinsure  substantially  all of its  business  to the  Company.  The
coinsurance  agreement  is required to have terms  standard in the  industry for
such agreements,  and is to include a tri-party  collateral  provision regarding
the assets funding the reserves. The parties to the coinsurance agreement are to
consist of the Company,  Memorial  Insurance Company and the Arkansas  Insurance
Department.  Any future insurance business by Memorial Insurance Company will be
covered by this coinsurance agreement.


<PAGE>


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


Additionally,  Memorial Insurance Company agrees in the letter of intent to make
its marketing sales personnel available to the Company for hire.  Moreover,  the
Company agrees to maintain the corporate  offices of Memorial  Insurance Company
at its current location.  The Company anticipates  completing the transaction no
later than October 30, 2005.

The  obligations of the Company and Memorial  Insurance  Company to complete the
transaction are contingent upon satisfaction of the following conditions:  (i) a
complete  and  satisfactory  review by the  Company  of the books,  records  and
business of Memorial  Insurance  Company,  with such review to be  completed  by
August 12, 2005; (ii) execution and delivery of a definitive  agreement  between
the Company and Memorial Insurance  Company;  (iii) approval and adoption of the
letter of intent by the Board of Directors of the Company and Memorial Insurance
Company;  and (iv) approval of the  transaction  by any  regulatory  authorities
having  jurisdiction over the Company and Memorial Insurance Company,  including
the insurance departments of the states of Arkansas and Utah.

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.

During the six months ended June 30, 2005,  Security  National  Mortgage Company
("SNMC")  experienced  a decrease in revenue and expenses due to the decrease 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 5,766  ($904,478,000) and 6,551  ($1,016,000,000)
loans, respectively, for the six months ended June 30, 2005 and 2004.

Results of Operations

Six Months Ended June 30, 2005 Compared to Six Months Ended June 30, 2004

Total  revenues  decreased by $2,643,000,  or 4.2%, to  $59,667,000  for the six
months ended June 30, 2005,  from  $62,310,000 for the six months ended June 30,
2004.  Contributing to this decrease in total revenues was a $5,057,000 decrease
in mortgage fee income and a $221,000 decrease in net mortuary sales.

Insurance premiums and other considerations increased by $1,093,000, or 8.5%, to
$13,893,000  for the six months ended June 30, 2005,  from  $12,800,000  for the
comparable  period in 2004.  This increase was  primarily due to the  additional
insurance premiums realized from new insurance sales.


<PAGE>

Net investment  income increased by $1,645,000,  or 21.1%, to $9,443,000 for the
six months ended June 30, 2005,  from  $7,798,000 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 $222,000,  or 3.7%, to $5,731,000
for the six months  ended June 30,  2005,  from  $5,953,000  for the  comparable
period in 2004.  This  reduction in at-need  mortuary sales was primarily due to
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 Camelback Funeral Home property.

Mortgage fee income  decreased by $5,057,000,  or 14.3%,  to $30,266,000 for the
six months ended June 30, 2005, from  $35,323,000  for the comparable  period in
2004.  This decrease was primarily  attributable  to a decrease in the number of
loan  originations  during  the first six months of 2005 due to an  increase  in
interest rates, which resulted in the refinancing of fewer mortgage loans.

Total benefits and expenses were $58,702,000, or 98.4% of total revenues for the
six months ended June 30,  2005,  as compared to  $60,483,000  or 97.1% of total
revenues for the comparable  period in 2004. The lower margin in 2005 was due to
fixed  expenses,  which did not decrease  proportionally  with the  reduction in
revenues.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy benefits  increased by an aggregate of $647,000,  or 5.5%, to $12,319,000
for the six months ended June 30, 2005,  from  $11,672,000,  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 $1,156,000,  or 41.8%, to $1,609,000 for the six
months ended June 30, 2005, from $2,765,000,  for the comparable period in 2004.
This increase was primarily due to recognition of improvement in persistency.

General  and  administrative  expenses  decreased  by  $1,859,000,  or 4.2%,  to
$41,990,000  for the six months ended June 30, 2005, from  $43,849,000,  for the
comparable period in 2004. This decrease  primarily  resulted from a decrease in
commissions  due to  fewer  mortgage  loan  originations  having  been  made  by
SecurityNational Mortgage Company during the six months of 2005.

Interest  expense  increased by $610,000,  or 57.6%,  to $1,669,000  for the six
months ended June 30, 2005, from $1,059,000,  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
$22,000,  or 1.9%, to $1,115,000,  for the six months ended June 30, 2005,  from
$1,137,000 for the comparable period in 2004. This reduction in at-need mortuary
cost of goods and services  sold was primarily due to 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
Camelback Funeral Home property.

Second Quarter of 2005 Compared to Second Quarter of 2004

Total  revenues  increased by  $807,000,  or 2.6% to  $31,844,000  for the three
months ended June 30, 2005, from $31,037,000 for the three months ended June 30,
2004.  Contributing  to this  increase  in total  revenues  was an  increase  of
$856,000 in investment income and an increase of $308,000 in insurance  premiums
and other considerations.


<PAGE>

Insurance premiums and other considerations  increased by $308,000,  or 4.8%, to
$6,712,000  for the three months ended June 30, 2005,  from  $6,404,000  for the
comparable  period in 2004.  This increase was  primarily due to the  additional
insurance premiums that were realized on new insurance sales.

Net investment  income  increased by $856,000,  or 20.2%,  to $5,098,000 for the
three months ended June 30, 2005, from  $4,242,000 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 $51,000, or 1.8%, to $2,846,000 for
the three months ended June 30, 2005, from $2,897,000 for the comparable  period
in 2004. This reduction in at-need  mortuary sales was primarily due to 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 Camelback Funeral Home property.

Mortgage fee income  decreased by $160,000,  or 14.3%,  to  $17,095,000  for the
three months ended June 30, 2005, from $17,255,000 for the comparable  period in
2004.  This decrease was primarily  attributable  to a decrease in the number of
loan  originations  during the  second  quarter  of 2005 due to an  increase  in
interest rates, which resulted in the refinancing of fewer mortgage loans.

Total benefits and expenses were $31,141,000, or 97.8% of total revenues for the
three months ended June 30 2005, as compared to  $29,717,000,  or 95.7% of total
revenues for the comparable  period in 2004. The lower margin in 2005 was due to
fixed  expenses,  which did not decrease  proportionally  with the  reduction in
revenues.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy  benefits  decreased by an aggregate of $155,000,  or 2.8%, to $5,706,000
for the three months ended June 30, 2005,  from  $5,551,000  for the  comparable
period in 2004. This increase was primarily the result of a decrease in reserves
for policyholders.

Amortization  of  deferred  policy  acquisition  costs  and  costs of  insurance
acquired decreased by $789,000, or 50.4%, to $777,000 for the three months ended
June 30, 2005, from $1,566,000 for the comparable  period in 2004. This decrease
was primarily due to recognition of improvements in persistency.

General  and  administrative  expenses  increased  by  $1,697,000,  or 7.9%,  to
$23,064,000 for the three months ended June 30, 2005,  from  $21,367,000 for the
comparable period in 2004. This increase  primarily resulted from an increase in
commissions due to increased insurance sales during the second quarter of 2005.

Interest  expense  increased by $333,000,  or 48.0%, to $1,027,000 for the three
months ended June 30, 2005,  from  $694,000 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  increased by
$27,000,  or 5.0%,  to $567,000 for the three  months ended June 30, 2005,  from
$540,000 for the comparable  period in 2004.  This increase in at-need  mortuary
sales was  primarily  due to  increased  cost of markers and bases offset by 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 Camelback 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

<PAGE>


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  $76,473,000 as of June 30, 2005,
compared to $81,051,000 as of December 31, 2004.  This represents 42% and 45% of
the total  insurance-related  investments  as of June 30, 2005, and December 31,
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 six categories  used for rating bonds.  At
June 30, 2005 and December 31, 2004, 2% ($1,662,000)  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 June 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 $54,388,000 as of June 30, 2005, as compared to $54,995,000 as
of  December  31,  2004.  Stockholders'  equity as a percent  of  capitalization
increased to 78% as of June 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 June 30, 2005, $27,811,000 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.


<PAGE>



Item 4.   Controls and Procedures

a) Evaluation of disclosure controls and procedures

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

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


<PAGE>

Item 1.        Legal Proceedings (Continued)

Mr. Hood filed a complaint with the California Department of Fair Employment and
Housing.  Mr. Hood has or will have a right to sue letter but no litigation  has
commenced.  The Company  has been  engaged in a review of the claims made in the
letter.  Based  on  its  investigation,  the  Company  believes  that  Mr.  Hood
voluntarily quit and was not terminated. Counsel for the Company and counsel for
Mr. Hood have been in  discussion  concerning  the matter.  At this stage of the
investigation,  the Company does not believe there is any  justification for the
claims being made. If a resolution of the dispute is not achieved and litigation
ensues, the Company is prepared to vigorously defend the action.

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

               NONE

Item 5.  Other Information

          On July 22,  2005,  the Company  entered  into a letter of intent with
          Memorial Insurance Company of America ("Memorial  Insurance Company"),
          an  Arkansas  domiciled  insurance  company,  to  purchase  all of the
          outstanding  shares of common  stock of  Memorial  Insurance  Company.
          Under the terms of the letter of intent,  the stockholders of Memorial
          Insurance Company are to receive $13,500,000 in


<PAGE>



          consideration  for all of the  outstanding  common  shares of Memorial
          Insurance Company, with each stockholder to receive a prorata share of
          the total amount of the purchase  consideration.  The stockholders are
          to receive a total  $13,500,000  for their  shares by means of capital
          distributions, stock purchase, stock buyback, or similar transactions,
          with the 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.

          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.

          Contemporaneously  with the  completion  of the  transaction  with the
          stockholders  of  Memorial  Insurance  Company,  the  letter of intent
          requires Memorial  Insurance Company to coinsure  substantially all of
          its business to the Company. The coinsurance  agreement is required to
          have terms  standard in the  industry for such  agreements,  and is to
          include a tri-party  collateral provision regarding the assets funding
          the reserves.  The parties to the coinsurance agreement are to consist
          of the Company,  Memorial Insurance Company and the Arkansas Insurance
          Department.  Any  future  insurance  business  by  Memorial  Insurance
          Company will be covered by this coinsurance agreement.

          Additionally,  Memorial  Insurance  Company  agrees  in the  letter of
          intent to make its marketing sales personnel  available to the Company
          for hire.  Moreover,  the  Company  agrees to maintain  the  corporate
          offices of Memorial  Insurance  Company at its current  location.  The
          Company  anticipates  completing the transaction no later than October
          30, 2005.

          The  obligations  of the Company  and  Memorial  Insurance  Company to
          complete the  transaction  are  contingent  upon  satisfaction  of the
          following  conditions:  (i) a complete and satisfactory  review by the
          Company of the books,  records  and  business  of  Memorial  Insurance
          Company,  with such review to be completed  by August 12,  2005;  (ii)
          execution and delivery of a definitive  agreement  between the Company
          and Memorial  Insurance  Company;  (iii)  approval and adoption of the
          letter of intent by the Board of Directors of the Company and Memorial
          Insurance  Company;  and  (iv)  approval  of  the  transaction  by any
          regulatory  authorities  having  jurisdiction  over  the  Company  and
          Memorial Insurance Company, including the insurance departments of the
          states of Arkansas and Utah.

          The  Company  has  determined  that a  marketing  employee of Security
          National Life Insurance Company has embezzled a total of $258,637 from
          the  Company.  The  Company's  audit  committee  is in the  process of
          conducting  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  Letter of Intent with Memorial Insurance Company of America (16)
       22  Subsidiaries of the Registrant
    31.1   Certification pursuant to 18 U.S.C. Section 1350 as enacted by
           Section 302 of the Sarbanes-Oxley Act of 2002
    31.2   Certification pursuant to 18 U.S.C. Section 1350 as enacted by
           Section 302 of the Sarbanes-Oxley Act of 2002
    32.1   Certification pursuant to 18 U.S.C. Section 1350, as adopted
           pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    32.2   Certification pursuant to 18 U.S.C. Section 1350, as adopted
           pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
------------------
      (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

<PAGE>

     (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
          August 11, 2005

Subsidiaries of the Registrant

    (b) Reports on Form 8-K:

          Incorporated  by reference from Report on Form 8-K, as filed on May 3,
          2005
          Incorporated  by reference  from Report on Form 8-K, as filed on
          May 25, 2005

          Incorporated  by  reference  from Report on Form 8-K, as filed on
          June 1, 2005

          Incorporated  by reference  from Report on Form 8-K/A, as filed on
          June 7, 2005

          Incorporated by reference from Report on Form 8-K/A, as filed on
          June 22, 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: August 15, 2005             By:    George R. Quist,
                                          ----------------
                                          Chairman of the Board and Chief
                                          Executive Officer
                                          (Principal Executive Officer)


DATED: August 15, 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: August 15, 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:  August 15, 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 June 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: August 15, 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 June 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:  August 15, 2005

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