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 March 31, 2004              Commission File Number: 0-9341
--------------------------------              ------------------------------



                     SECURITY NATIONAL FINANCIAL CORPORATION
                            Exact Name of Registrant.



                 UTAH                                    87-0345941
---------------------------------------------    --------------------------
(State or other jurisdiction of                  IRS Identification Number
 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                5,054,906
-------------------------------------              -------------
         Title of Class                        Number of Shares Outstanding
                                                  as of March 31, 2004


Class C Common Stock, $.20 par value                 6,260,793
------------------------------------               --------------
         Title of Class                        Number of Shares Outstanding
                                                  as of March 31, 2004


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                                    FORM 10-Q

                          QUARTER ENDED MARCH 31, 2004

                                TABLE OF CONTENTS


                         PART I - FINANCIAL INFORMATION



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

               Consolidated Statement of Earnings - Three months
               ended March 31, 2004 and 2003 (unaudited)................3

               Consolidated Balance Sheet - March 31, 2004, (unaudited)
               and December 31, 2003..................................4-5

               Consolidated Statement of Cash Flows -
               Three months ended March 31, 2004 and 2003
               (unaudited)..............................................6

               Notes to Consolidated Financial Statements............7-10


Item 2      Management's Discussion and Analysis of Financial Condition
             and Results of Operations..............................10-13

Item 3      Quantitative and Qualitative Disclosures about
            Market Risk................................................13
------

Item 4      Controls and Procedures....................................13
------

                           PART II - OTHER INFORMATION

            Other Information.......................................14-16

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

            Certifications..........................................18-20


<PAGE>


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

                                                       Three Months Ended
                                                             March 31,
Revenues:                                              2004            2003
--------                                           ------------    ------------
Insurance premiums and other considerations           $6,396,174     $5,864,427
Net investment income                                  3,556,247      3,920,372
Net mortuary and cemetery sales                        3,056,405      2,584,856
Realized gains on investments and other assets             5,323         --
Mortgage fee income                                   18,068,730     21,755,920
Other                                                    190,038        124,122
                                                    ------------   ------------
   Total revenues                                     31,272,917     34,249,697
                                                    ------------   ------------

Benefits and expenses:
Death benefits                                         3,772,951      3,818,319
Surrenders and other policy benefits                     479,839        605,156
Increase in future policy benefits                     1,868,732      1,416,571
Amortization of deferred policy acquisition costs
   and cost of insurance acquired                      1,199,275        958,895
General and administrative expenses:
   Commissions                                        14,207,056     15,850,637
   Salaries                                            3,581,644      3,222,391
   Other 4,692,879                                     4,620,111
Interest expense                                         365,323        823,468
Cost of goods and services sold
  of the mortuaries and cemeteries                       597,532        560,867
                                                    ------------   ------------
   Total benefits and expenses                        30,765,231     31,876,415
                                                    ------------   ------------

Earnings before income taxes                             507,686      2,373,282
Income tax expense                                      (128,118)      (667,542)
Minority interest (income) loss of subsidiary             22,014        (20,690)
                                                    ------------   ------------
      Net earnings                                      $401,582     $1,685,050
                                                    ============   ============

Net earnings per common share                               $.07           $.32
                                                            ====           ====

   Weighted average outstanding common shares          5,659,501      5,284,966
                                                    ============   ============

Net earnings per common share-assuming dilution             $.07           $.31
                                                            ====           ====

   Weighted average outstanding common shares
      assuming-dilution                                5,819,608      5,498,651
                                                    ============   ============


See accompanying notes to consolidated financial statements.


<PAGE>


                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET


                                                   March 31, 2004  December 31,
                                                    (Unaudited)      2003
Assets:                                            --------------  ------------
Insurance-related investments:
Fixed maturity securities held
   to maturity, at amortized cost                  $48,283,709      $37,293,989
Fixed maturity securities available
   for sale, at market                              14,275,436       14,270,037
Equity securities available for sale,
   at market                                         4,021,530        3,453,444
Mortgage loans on real estate                       45,293,794       29,914,745
Real estate, net of accumulated
   depreciation and allowances for losses            8,960,356        8,519,680
Policy, student and other loans                     12,036,575       11,753,617
Short-term investments                               4,063,908        2,054,248
                                                 -------------    -------------
      Total insurance-related
         investments                               136,935,308      107,259,760
                                                 -------------    -------------
Restricted assets of cemeteries and mortuaries       4,988,732        4,745,709
                                                 -------------    -------------
Cash                                                10,489,014       19,704,358
                                                 -------------    -------------
Receivables:
   Trade contracts                                  10,180,404        8,600,212
   Mortgage loans sold to investors                 95,467,897      114,788,185
   Receivable from agents                            1,212,345        1,318,958
   Receivable from officers                             30,040           37,540
   Other                                             1,235,752        1,086,523
                                                 -------------    -------------
      Total receivables                            108,126,438      125,831,418
   Allowance for doubtful accounts                  (1,702,294)      (1,706,678)
                                                 -------------    -------------
   Net receivables                                 106,424,144      124,124,740
                                                 -------------    -------------
Policyholder accounts on deposit
   with reinsurer                                    6,791,615        6,795,983
Land and improvements held for sale                  8,382,172        8,387,061
Accrued investment income                            1,504,938        1,142,690
Deferred policy and pre-need acquisition costs      18,034,186       17,202,489
Property, plant and equipment, net                  10,911,684       11,009,416
Cost of insurance acquired                          14,976,979       14,980,763
Excess of cost over net assets
   of acquired subsidiaries                            683,191          683,191
Other                                                  935,072          873,424
                                                 -------------    -------------
      Total assets                                $321,057,035     $316,909,584
                                                 =============    =============






See accompanying notes to consolidated financial statements.


<PAGE>
<TABLE>
<CAPTION>


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


                                                        March 31, 2004      December 31,
                                                         (Unaudited)          2003
Liabilities:                                            ---------------   -------------
<S>                                                      <C>              <C>
Future life, annuity, and other policy benefits          $221,698,731     $218,793,693
Unearned premium reserve                                    2,095,961        1,945,203
Bank loans payable                                         14,092,531       14,422,670
Notes and contracts payable                                 3,208,994        3,440,694
Deferred pre-need cemetery and funeral
   contracts revenues and estimated future
   cost of pre-need sales                                  10,432,002       10,520,280
Accounts payable                                            1,087,283        1,274,183
Funds held under reinsurance treaties                       1,295,470        1,294,589
Other liabilities and accrued expenses                     12,139,378       11,171,368
Income taxes                                               11,161,244       10,914,845
                                                        -------------    -------------
      Total liabilities                                   277,211,594      273,777,525
                                                        -------------    -------------

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

Minority interest                                           3,966,454        3,956,628
                                                        -------------    -------------

Stockholders' Equity:
Common stock:
      Class A: $2.00 par value, authorized 10,000,000
         shares, issued 6,331,424 shares in 2004
         and 6,275,104 shares in 2003                      12,662,848       12,550,208
      Class C: $0.20 par value, authorized 7,500,000
         shares, issued 6,336,129 shares in
         2004 and 6,469,638 shares in 2003                  1,267,226        1,293,927
                                                        -------------    -------------
   Total common stock                                      13,930,074       13,844,135
Additional paid-in capital                                 13,812,892       13,569,582
Accumulated other comprehensive income
  (loss) and other items, net of deferred taxes              (136,072)        (437,973)
Retained earnings                                          15,487,087       15,414,681
Treasury stock at cost (1,276,518 Class A shares and
 75,336 Class C shares in 2004; 1,276,518
 Class A shares and 75,336 Class C
 shares in 2003, held by
 affiliated companies)                                     (3,214,994)      (3,214,994)
                                                        -------------    -------------
Total stockholders' equity                                 39,878,987       39,175,431
                                                        -------------    -------------
   Total liabilities and stockholders' equity            $321,057,035     $316,909,584
                                                        =============    =============
</TABLE>



See accompanying notes to consolidated financial statements.


<PAGE>


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

                                                Three Months Ended March 31,
                                               2004                    2003
                                               ----                    ----
Cash flows from operating activities:
      Net cash provided by (used in)
      operating activities                      $21,000,620     $(4,971,582)
                                               ------------    ------------

Cash flows from investing activities:
 Securities held to maturity:
      Purchase - fixed maturity securities      (12,026,957)     (5,030,844)
      Calls and maturities - fixed
        maturity securities                       2,579,486       2,287,170
   Securities available for sale:
      Calls and maturities - fixed
         maturity securities                             --         360,000
   Purchases of short-term investments           (8,762,251)     (3,158,367)
   Sales of short-term investments                6,164,882       2,918,507
   Purchases of restricted assets                   (91,594)        (98,963)
   Mortgage, policy, and other loans made       (22,714,986)     (2,023,372)
   Payments received for mortgage,
      real estate, policy, and other loans        7,554,722       3,581,015
   Purchases of property, plant,
      and equipment                                (296,546)       (253,304)
   Purchases of real estate                        (488,312)       (313,750)
   Purchase of subsidiary                          (297,994)             --
   Sale of real estate                                   --         230,085
                                               ------------    ------------

         Net cash (used in) provided by
            investing activities                (28,379,550)     (1,501,823)
                                               ------------    ------------

Cash flows from financing activities:
   Annuity and pre-need contract receipts         1,348,322       1,454,211
   Annuity and pre-need contract withdrawals     (2,544,563)     (2,432,515)
   Repayment of bank loans and notes and
      contracts payable                            (640,173)       (477,780)
   Other                                                 --          25,200
                                               ------------    ------------

      Net cash (used in) provided by
         financing activities                    (1,836,414)     (1,430,884)
                                               ------------    ------------
Net change in cash                               (9,215,344)     (7,904,289)

Cash at beginning of period                      19,704,358      38,199,041
                                               ------------    ------------

Cash at end of period                           $10,489,014     $30,294,752
                                               ============    ============

See accompanying notes to consolidated financial statements.


<PAGE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                           March 31, 2004 (Unaudited)

1.  Basis of Presentation

The accompanying  unaudited consolidated financial statements have been prepared
in accordance with accounting principles generally accepted in the United States
of America for interim  financial  information and with the instructions to Form
10-Q and Article 10 of Regulation S-X.  Accordingly,  they do not include all of
the  information  and  footnotes  required by  accounting  principles  generally
accepted in the United States of America for complete financial  statements.  In
the opinion of  management,  all  adjustments  (consisting  of normal  recurring
accruals)  considered  necessary  for a fair  presentation  have been  included.
Operating results for the three months ended March 31, 2004, are not necessarily
indicative of the results that may be expected for the year ending  December 31,
2004. For further  information,  refer to the consolidated  financial statements
and  footnotes  thereto for the year ended  December 31,  2003,  included in the
Company's Annual Report on Form 10-K (file number 0-9341).

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

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

2.   Comprehensive Income

For the three months ended March 31, 2004 and 2003, total  comprehensive  income
(loss) amounted to $703,483 and $(300,228), 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 three months ended March 31, 2004 and
2003 would have been reduced by the following:

                                               Three Months Ended March 31,
                                             2004                      2003
                                            ----                      ----
Net earnings as reported                 $401,582                   $1,685,050
Deduct:  Total stock-based employee
         compensation expense
         determined under fair value
         based method for all awards,
         net of related tax effects        --                         (133,000)
                                         --------                   ----------
Pro forma net earnings                   $401,582                   $1,552,050
                                         ========                   ==========


<PAGE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                           March 31, 2004 (Unaudited)

                             Three Months Ended March 31,
                                    2004    2003
                                    ----    ----
Net earnings per common share:
  Basic - as reported               $.07   $0.32
                                    ====   =====

  Basic - pro forma                 $.07   $0.29
                                    ====   =====

  Diluted - as reported             $.07   $0.31
                                    ====   =====

  Diluted - pro forma               $.07   $0.28
                                    ====   =====

4.  Earnings  Per Share
    The basic and diluted  earnings  per share  amounts were calculated
    as follows:

                                      Three Months Ended March 31,
                                           2004         2003
                                          ----          ----
Numerator:
      Net income                          $401,582   $1,685,050
                                          ========   ==========
Denominator:
      Denominator for basic earnings per share-
        weighted-average shares          5,659,501    5,284,966
                                        ----------   ----------

      Effect of dilutive securities:
        Employee stock options             158,241      208,961
        Stock appreciation rights            1,866        4,724
                                        ----------   ----------
      Dilutive potential common shares     160,107      213,685
                                        ----------   ----------
      Denominator for diluted earnings
        per share-adjusted weighted-average
        shares and  assumed conversions  5,819,608    5,498,651
                                        ==========   ==========

      Basic earnings per share                $.07         $.32
                                              ====         ====

      Diluted earnings per share              $.07         $.31
                                              ====         ====




<PAGE>
<TABLE>
<CAPTION>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                           March 31, 2004, (Unaudited)

5.  Business Segment
                                        Life             Cemetery/                            Reconciling
                                      Insurance          Mortuary           Mortgage             Items        Consolidated
For the Three Months Ended
March 31, 2004
--------------------------
<S>                                <C>                 <C>                 <C>                <C>            <C>
   Revenues from
      external customers            $  8,357,223        $3,226,386         $19,689,308$           --          $31,272,917

   Intersegment revenues               2,373,013           --                  --              (2,373,013)        --

   Segment profit (loss)
      before income taxes                433,208           347,749            (273,266)            --             507,686

   Identifiable assets               305,088,724        44,736,652          20,357,961        (49,126,302)    321,057,035

For the Three Months Ended
March 31, 2003
--------------------------
   Revenues from
      external customers            $  7,436,122        $2,840,813         $23,972,762 $          --          $34,249,697

   Intersegment revenues               2,273,273          --                  --               (2,273,273)       --

   Segment profit (loss)
      before income taxes               (112,461)          (97,279)          2,583,022                          2,373,282

   Identifiable assets               296,535,351        42,785,025          18,071,543        (44,634,629)    312,757,290

</TABLE>


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                           March 31, 2004, (Unaudited)

6. Recent Acquisition

On March 16, 2004,  with the  approval of the  Louisiana  Insurance  Department,
Security National Life Insurance Company purchased all of the outstanding common
stock of  Paramount  Security  Life  Insurance  Company,  a Louisiana  domiciled
company (Paramount) located in Shreveport,  Louisiana.  As of December 31, 2003,
Paramount had 9,383 policies in force and approximately, 29 agents. The purchase
consideration  was $4,397,994  and was effective  January 26, 2004. For the year
ended  December 31, 2003,  Paramount  had revenues of $614,000 and net income of
$76,000. As of December 31, 2003,  statutory assets and capital and surplus were
$6,073,000 and $4,100,000, respectively.

Paramount  is licensed in the State of  Louisiana  and is  permitted  to appoint
agents who do not have a full life insurance  license.  These agents are limited
to selling  small life  insurance  policies  in the final  expense  market.  The
Company believes that with this license it will be able to expand its operations
in Louisiana.  The Company is planning on servicing Paramount  policyholders out
of its Jackson, Mississippi office, and has closed the Shreveport office.

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, 2004. The adoption of Interpretation  No. 46 did not have a
material impact on the Company's financial position or results of operations.

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 lower interest  rates by originating  and
refinancing mortgage loans.

During the three months ended March 31, 2004, 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  fees 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 3,291  ($496,307,000)  and 4,130  ($600,313,000)
loans, respectively, for the three months ended March 31, 2004 and 2003.


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                           March 31, 2004, (Unaudited)


Results of Operations

Three Months Ended March 31, 2004 Compared to Three Months Ended March 31, 2003

Total revenues  decreased by $2,977,000,  or 8.7%, to $31,273,000  for the three
months ended March 31, 2004,  from  $34,250,000 for the three months ended March
31,  2003.  Contributing  to this  decrease in total  revenues  was a $3,687,000
decrease  in  mortgage  fee income,  and a $364,000  decrease in net  investment
income.

Insurance premiums and other considerations  increased by $532,000,  or 9.1%, to
$6,396,000  for the three months ended March 31, 2004,  from  $5,864,000 for the
comparable  period in 2003.  This increase was  primarily due to the  additional
insurance premiums that were realized on new insurance sales.

Net  investment  income  decreased by $364,000,  or 9.3%, to $3,556,000  for the
three months ended March 31, 2004, from $3,920,000 for the comparable  period in
2003.  This decrease was primarily  attributable  to reduced  borrower  interest
income on fewer mortgage loans originated by Security  National Mortgage Company
during the quarter.

Net mortuary and cemetery sales  increased by $472,000,  or 18.2%, to $3,056,000
for the three months ended March 31, 2004,  from  $2,585,000  for the comparable
period in 2003. This increase was primarily due to additional  at-need  cemetery
and mortuary sales.

Mortgage fee income  decreased by $3,687,000,  or 16.9%,  to $18,069,000 for the
three months ended March 31, 2004, from $21,756,000 for the comparable period in
2003.  This decrease was primarily  attributable  to a decrease in the number of
loan originations during the three months of 2004 due to an increase in interest
rates resulting in fewer borrowers refinancing their mortgage loans.

Total benefits and expenses were  $30,765,000,  or 98.4%,  of total revenues for
the three months ended March 31, 2004, as compared to $31,876,000,  or 93.1%, of
total  revenues for the  comparable  period in 2003. The lower margin in 2004 is
due to fixed expenses,  which did not decrease  proportionally  with the drop in
revenue.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy  benefits  increased by an aggregate of $282,000,  or 4.8%, to $6,122,000
for the three months ended March 31, 2004,  from  $5,840,000  for the comparable
period in 2003.  This  increase  was  primarily  the  result of an  increase  in
reserves for policyholders.

Amortization of deferred policy acquisition costs and cost of insurance acquired
increased by $240,000,  or 25.1%, to $1,199,000 for the three months ended March
31, 2004,  from $959,000 for the  comparable  period in 2003.  This increase was
primarily due to the additional insurance premiums for the period.


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                           March 31, 2004, (Unaudited)


General  and  administrative  expenses  decreased  by  $1,211,000,  or 5.1%,  to
$22,482,000 for the three months ended March 31, 2004, from  $23,693,000 for the
comparable period in 2003. This decrease  primarily  resulted from a decrease in
commissions due to fewer mortgage loan originations having been made by Security
National Mortgage Company during the three months of 2003.

Interest  expense  decreased  by $458,000,  or 55.6%,  to $365,000 for the three
months ended March 31, 2004,  from $823,000 for the  comparable  period in 2003.
This decrease was primarily due to reduced  warehouse  lines of credit  required
for fewer mortgage loan originations by Security National Mortgage Company.

Cost of goods and services sold of the mortuaries  and  cemeteries  increased by
$37,000,  or 6.5%,  to $598,000 for the three months ended March 31, 2004,  from
$561,000 for the comparable  period in 2003.  This increase was primarily due to
increased costs of funeral products.

Liquidity and Capital Resources

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

The  Company  attempts  to  match  the  duration  of  invested  assets  with its
policyholder  and  cemetery  and  mortuary  liabilities.  The  Company  may sell
investments other than those  held-to-maturity  in the portfolio to help in this
timing;  however,  to date, that has not been necessary.  The Company  purchases
short-term  investments  on a  temporary  basis  to  meet  the  expectations  of
short-term requirements of the Company's products.

The  Company's  investment  philosophy  is intended to provide a rate of return,
which will persist during the expected duration of policyholder and cemetery and
mortuary liabilities regardless of future interest rate movements.

The Company's  investment  policy is to invest  predominantly  in fixed maturity
securities,  mortgage loans, and warehouse  mortgage loans on a short-term basis
before selling the loans to investors in accordance  with the  requirements  and
laws  governing  the  life  insurance  subsidiaries.  Bonds  owned  by the  life
insurance subsidiaries amounted to $62,559,000 as of March 31, 2004, compared to
$51,564,000  as of December 31, 2003.  This  represents 46% and 48% of the total
insurance-related  investments  as of March 31,  2004,  and  December  31, 2003,
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 March 31, 2004 and
December 31, 2003, 2%  ($1,315,000)  and 3 % ($1,739,000) of the Company's total
investment  in bonds were invested in bonds in rating  categories  three through
six, which are considered non-investment grade.


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                           March 31, 2004, (Unaudited)


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 March 31, 2004,
and December 31, 2003,  the life  insurance  subsidiary  exceeded the regulatory
criteria.

The Company's total  capitalization  of  stockholders'  equity and bank debt and
notes payable was  $57,181,000  as of March 31, 2004, as compared to $57,039,000
as of December 31,  2003.  Stockholders'  equity as a percent of  capitalization
increased to 70% as of March 31, 2004, from 69% as of December 31, 2003.

Lapse  rates  measure the amount of  insurance  terminated  during a  particular
period. The Company's lapse rate for life insurance in 2003 was 8.6% as compared
to a rate of 10.7% for 2002. The 2004 lapse rate to date has been  approximately
the same as 2003.

At March 31,  2004,  $27,550,064  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, 2003.

Item 4.   Controls and Procedures

     (a)  Evaluation  of  disclosure  controls and  procedures  - The  Company's
principal  executive  officer and principal  financial officer have reviewed and
evaluated the effectiveness of the Company's  disclosure controls and procedures
(as defined in Rules  240.13a-14(c) and 15d-14(c) under the Securities  Exchange
Act of 1934 (the  "Exchange  Act") as of the end of the  period  covered by this
quarterly report. Based on that evaluation,  the principal executive officer and
the principal  financial  officer have concluded  that the Company's  disclosure
controls and procedures are effective,  providing them with material information
relating to the Company as required to be  disclosed  in the reports the Company
files or submits under the Exchange Act on a timely basis.

     (b) Changes in internal controls - There were no significant changes in the
Company's  internal  controls over financial  reporting or in other factors that
could  significantly  affect the  Company's  internal  controls  and  procedures
subsequent  to the date of their  most  recent  evaluation,  nor were  there any
significant  deficiencies  or  material  weaknesses  in the  Company's  internal
controls. As a result, no corrective actions were required or undertaken.



<PAGE>


                           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 delivered to Lynn W. Brown six stock certificates  representing
2,000 shares in 1970 and 1971.  Mr. Brown died in 1972.  It is asserted  that at
the time the 2,000 shares were issued and  outstanding,  such  represented  a 2%
ownership  of  Memorial  Estates.  It is  alleged  Mr.  Brown  was  entitled  to
preemptive  rights and that after the  issuance of the stock to Mr.  Brown there
were further issuances of stock without providing written notice to Mr. Brown or
his estate with respect to an opportunity to purchase more stock.

It is also asserted  among other things that Thomas "has the right to a transfer
of Brown's shares to Thomas on defendants'  (which  includes  Security  National
Financial  Corporation  as  well  as  Memorial  Estates,   Inc.)  books  and  to
restoration of Brown's  proportion of share ownership in Memorial at the time of
his death by issuance and delivery to Thomas of sufficient shares of defendant's
publicly  traded and  unrestricted  stock in  exchange  for the 2,000  shares of
Memorial stock and payment of all dividends from the date of Thomas's demand, as
required by Article XV of the Articles of  Incorporation."  The formal discovery
cutoff was January 15, 2004. The Company has been verbally  informed that Thomas
will dismiss the case but such has not been  communicated in writing.  Until the
foregoing actually happens, the Company intends to vigorously defend the matter,
including an assertion that the statute of limitations bars the claims.

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

NGU  alleged  that it had been  damaged  far in  excess of the  $75,000  minimum
jurisdictional  limits of the federal court. NGU also sought attorney's fees and
costs  as well as  prejudgment  and post  judgment  interest.  A second  amended
complaint  and a third amended  complaint,  which  included a fraud claim,  were
filed. A motion was filed by the Company to dismiss the third amended complaint,
including   the  fraud  claim.   The  court  denied  the  motion.   The  Company
counterclaimed for what it claimed to be a debit balance owing to it pursuant to
the  relationship  between  the  parties  (the amount  subject to  reduction  as
premiums are received).  The Company also sought to recover  attorney's fees and
costs,  as well as  punitive  damages  on three of its  causes  of action in the
counterclaim.

Following initial discovery, the federal case was dismissed by stipulation.  The
matter was refiled in Texas state court, Tarrant County, Case No. 348 195490 02.
The  claims  of the  respective  parties  are  essentially  the same as those in
federal court, which claims include fraudulent  inducement  relative to entering
into a contract,  fraud,  breach of  contract,  breach of duty of good faith and
fair  dealing,  attorney's  fees and  exemplary  damages  as well as  seeking an
accounting  and  contesting the interest  charges.  Certain  discovery has taken
place, including depositions,  since the filing again in state court and further
discovery  is in process  and is  anticipated.  The  Company  filed a motion for
partial  summary  judgment  with respect to certain  items in the  counterclaim,
which motion was denied.  A trial is presently set for October 2004. The Company
intends to vigorously defend the matter as well as prosecute its counterclaim.

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


<PAGE>




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

               NONE

Item 6.        Exhibits and Reports on Form 8-K

 (a)     Exhibits:
3.1. Articles of Restatement of Articles of Incorporation (8) 3.2. Amended
Bylaws (11)

      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 (5)
    10.4    2003 Stock Option Plan (10)
    10.5    Deferred Compensation Agreement with George R. Quist (2)
    10.6    Employment Agreement with Scott M. Quist. (4)
    10.7    Promissory Note with George R. Quist (6)
    10.8    Deferred Compensation Plan (7)
    10.9    Coinsurance Agreement between Security National Life and Acadian (8)
    10.10   Assumption Agreement among Acadian, Acadian Financial Group, Inc.,
            Security National Life and the Company (8)
    10.11   Asset Purchase Agreement between Acadian, Acadian Financial Group,
            Inc., Security National Life and the Company (8)
    10.12   Promissory Note with Key Bank of Utah (9)
    10.13   Loan and Security Agreement with Key Bank of Utah (9)
    10.14   Stock Purchase and Sale Agreement with Ault Glazer & Co. Investment
            Management LLC (11)
    10.15   Stock Purchase Agreement with Paramount Security Life Insurance
            Company (12)
    10.16   Reinsurance Agreement between Security National Life Insurance
            Company and Guaranty Income Life Insurance Company (13)
    10.17    Employment agreement with J. Lynn Beckstead, Jr. (13)


<PAGE>



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
        (4) Incorporated by reference from Annual Report on Form 10-K, as filed
            on March 31, 1998
        (5) Incorporated by reference from Schedule 14A Definitive Proxy
            Statement, filed August 29, 2000, relating to the Company's
            Annual Meeting of Shareholders
        (6) Incorporated by reference from Annual Report on Form 10-K,
            as filed on April 16, 2001
        (7) Incorporated by reference from Annual Report on Form 10-K, as filed
            on April 3, 2002
        (8) Incorporated by reference from Report on Form 8-K-A as filed on
            January 8, 2003
        (9) Incorporated by reference from Annual Report on Form 10-K, as filed
            on April 15, 2003
       (10) Incorporated by reference from Schedule 14A  Definitive  Proxy
            Statement,  Filed on June 5, 2003 relating to the Company's Annual
            Meeting of Shareholders
       (11) Incorporated by reference from Report on Form 10-Q, as filed
            on November 14, 2003 (12) Incorporated by reference from
            Report on Form 8-K, as filed on March 29, 2004 (13)
            Incorporated by reference from Report on Form 10-K, as filed
            on March 30, 2004

Subsidiaries of the Registrant

    (b) Reports on Form 8-K:

          None
<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: May 15, 2004                  By:    George R. Quist,
                                            ----------------
                                            Chairman of the Board and Chief
                                            Executive Officer
                                            (Principal Executive Officer)


DATED: May 15, 2004                  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,  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  in the  design  or  operation  of
     internal controls which could adversely affect the registrant's  ability to
     record,  process,  summarize and report  financial data and have identified
     for the registrant's auditors any material weaknesses in internal controls;
     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: May 15, 2004

                                       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,  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  in the  design  or  operation  of
     internal controls which could adversely affect the registrant's  ability to
     record,  process,  summarize and report  financial data and have identified
     for the registrant's auditors any material weaknesses in internal controls;
     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:  May 15, 2004

                                       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 10Q for the period ending March 31, 2004, as
filed with the  Securities  and  Exchange  Commission  on the date  hereof  (the
"Report"), I, George R. Quist, Chief Executive Officer of the Company,  certify,
pursuant  to 18 U.S.C.  ss.  1350,  as adopted  pursuant  to Section  906 of the
Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

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

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

By:      George R. Quist
         Chief Executive Officer
         May 15, 2004

                                  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 10Q for the period ending March 31, 2004, as
filed with the  Securities  and  Exchange  Commission  on the date  hereof  (the
"Report"), I, Stephen M. Sill, Chief Financial Officer of the Company,  certify,
pursuant  to 18 U.S.C.  ss.  1350,  as adopted  pursuant  to Section  906 of the
Sarbanes-Oxley Act of 2002, that, to the best of my knowledge and belief:

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

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

By:      Stephen M. Sill
         Chief Financial Officer
         May 15, 2004