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, 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                       5,028,062
-------------------------------------         ----------------------------------
         Title of Class                       Number of Shares Outstanding as of
                                              June 30, 2004


Class C Common Stock, $.20 par value                        6,255,879
------------------------------------          ----------------------------------
         Title of Class                       Number of Shares Outstanding as of
                                              June 30, 2004


<PAGE>


                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES

                                    FORM 10-Q

                           QUARTER ENDED JUNE 30, 2004

                                TABLE OF CONTENTS


                         PART I - FINANCIAL INFORMATION

<TABLE>
<CAPTION>


Item 1       Financial Statements                                                                   Page No.
------                                                                                              --------
<S>            <C>                                                                                        <C>
               Consolidated Statement of Earnings - Six and three months ended
               June 30, 2004 and 2003 (unaudited)............................................................3

               Consolidated Balance Sheet - June 30, 2004, (unaudited)
               and December 31, 2003.......................................................................4-5

               Consolidated Statement of Cash Flows -
               Six months ended June 30, 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...................................................................11-13

Item 3      Quantitative and Qualitative Disclosures about Market Risk......................................14
------

Item 4      Controls and Procedures.........................................................................15
------

                                                 PART II - OTHER INFORMATION

            Other Information............................................................................15-17

            Signature Page..................................................................................18

            Certifications...............................................................................19-21
</TABLE>


                                       2
<PAGE>


                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                       CONSOLIDATED STATEMENT OF EARNINGS
                                   (Unaudited)
<TABLE>
<CAPTION>

                                                                        Six Months Ended                     Three Months Ended
                                                                            June 30,                              June 30,
                                                                            --------                              --------
Revenues:                                                             2004             2003                2004             2003
--------                                                              ----             ----                ----             ----
<S>                                                              <C>                <C>              <C>                <C>
Insurance premiums and other considerations                      $ 12,800,139       $11,590,095      $  6,403,965       $ 5,725,668
Net investment income                                               7,798,307         8,365,540         4,242,060         4,445,168
Net mortuary and cemetery sales                                     5,952,887         5,295,245         2,896,482         2,710,389
Realized gains on investments and other assets                          5,323           --                --               --
Mortgage fee income                                                35,323,455        52,912,149        17,254,725        31,156,229
Other                                                                 430,186           183,425           240,148            59,303
                                                                 ------------       -----------      ------------       -----------
   Total revenues                                                  62,310,297        78,346,454        31,037,380        44,096,757
                                                                 ------------       -----------      ------------       -----------

Benefits and expenses:
----------------------
Death benefits                                                      6,898,118         7,043,060         3,125,167         3,224,741
Surrenders and other policy benefits                                  771,173         1,101,092           291,334           495,936
Increase in future policy benefits                                  4,003,080         2,807,653         2,134,348         1,391,082
Amortization of deferred policy acquisition costs
   and cost of insurance acquired                                   2,764,792         2,268,779         1,565,517         1,309,884
General and administrative expenses:
   Commissions                                                     26,800,161        39,220,239        12,593,105        23,369,602
   Salaries                                                         7,307,930         6,957,688         3,726,286         3,735,297
   Other                                                            9,740,440        10,183,897         5,047,561         5,563,786
Interest expense                                                    1,059,566         1,799,438           694,243           975,970
Cost of goods and services sold
   of the mortuaries and cemeteries                                 1,137,344         1,123,738           539,812           562,871
                                                                 ------------       -----------      ------------       -----------
   Total benefits and expenses                                     60,482,604        72,505,584        29,717,373        40,629,169
                                                                 ------------       -----------      ------------       -----------

Earnings before income taxes                                        1,827,693         5,840,870         1,320,007         3,467,588
Income tax expense                                                   (525,872)       (1,920,227)         (397,754)       (1,252,685)
Minority interest (income) loss of subsidiary                          23,705           (14,406)            1,691             6,284
                                                                 ------------       -----------      ------------       -----------
      Net earnings                                               $  1,325,526       $ 3,906,237      $    923,944       $ 2,221,187
                                                                 ============       ===========      ============       ===========

Net earnings per common share                                    $        .23       $       .74      $        .16       $       .42
                                                                 ============       ===========      ============       ===========
   Weighted average outstanding common shares                       5,656,575         5,301,245         5,662,761         5,317,068
                                                                 ============       ===========      ============       ===========

Net earnings per common share-assuming dilution                  $        .23       $       .71      $        .16       $       .40
                                                                 ============       ===========      ============       ===========
   Weighted average outstanding common shares
      assuming-dilution                                             5,793,655         5,514,930         5,716,048         5,537,942
                                                                 ============       ===========      ============       ===========
</TABLE>

See accompanying notes to consolidated financial statements.


                                       3
<PAGE>


                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                           CONSOLIDATED BALANCE SHEET


                                                  June 30, 2004    December 31,
                                                  (Unaudited)         2003
                                                  ------------     ------------
Assets:
-------
Insurance-related investments:
Fixed maturity securities held
   to maturity, at amortized cost                $  63,025,570   $   37,293,989
Fixed maturity securities available
   for sale, at market                              13,168,905       14,270,037
Equity securities available for sale,
   at market                                         3,845,352        3,453,444
Mortgage loans on real estate                       49,574,318       29,914,745
Real estate, net of accumulated
   depreciation and allowances for losses            9,814,064        8,519,680
Policy, student and other loans                     12,028,867       11,753,617
Short-term investments                               4,157,735        2,054,248
                                                 -------------   --------------
      Total insurance-related
         Investments                               155,614,811      107,259,760
                                                 -------------   --------------
Restricted assets of cemeteries and mortuaries       5,060,808        4,745,709
                                                 -------------   --------------
Cash                                                13,632,731       19,704,358
                                                 -------------   --------------
Receivables:
   Trade contracts                                   7,529,555        8,600,212
   Mortgage loans sold to investors                 73,975,382      114,788,185
   Receivable from agents                            1,268,383        1,318,958
   Receivable from officers                             19,540           37,540
   Other                                             1,552,584        1,086,523
                                                 -------------   --------------
      Total receivables                             84,345,444      125,831,418
   Allowance for doubtful accounts                  (1,705,057)      (1,706,678)
                                                 -------------   --------------
   Net receivables                                  82,640,387      124,124,740
                                                 -------------   --------------
Policyholder accounts on deposit
   with reinsurer                                    6,765,401        6,795,983
Land and improvements held for sale                  8,387,771        8,387,061
Accrued investment income                            1,617,899        1,142,690
Deferred policy and pre-need acquisition costs      18,536,540       17,202,489
Property, plant and equipment, net                  10,809,780       11,009,416
Cost of insurance acquired                          14,669,152       14,980,763
Excess of cost over net assets
   of acquired subsidiaries                            683,191          683,191
Other                                                  896,891          873,424
                                                 -------------   --------------
      Total assets                               $ 319,315,362   $  316,909,584
                                                 =============   ==============



See accompanying notes to consolidated financial statements.


                                       4
<PAGE>

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


                                                 June 30, 2004     December 31,
                                                  (Unaudited)         2003
                                                 -------------     ------------

Liabilities:
------------
Future life, annuity, and other policy benefits  $ 222,694,714   $  218,793,693
Unearned premium reserve                             2,140,677        1,945,203
Bank loans payable                                  12,368,301       14,422,670
Notes and contracts payable                          2,970,321        3,440,694
Deferred pre-need cemetery and funeral
   contracts revenues and estimated future
   cost of pre-need sales                           10,469,677       10,520,280
Accounts payable                                     1,181,690        1,274,183
Funds held under reinsurance treaties                1,288,832        1,294,589
Other liabilities and accrued expenses              10,261,903       11,171,368
Income taxes                                        11,489,361       10,914,845
                                                 -------------   --------------
      Total liabilities                            274,865,476      273,777,525
                                                 -------------   --------------

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

Minority interest                                    3,911,529        3,956,628
                                                 -------------   --------------

Stockholders' Equity:
---------------------
Common stock:
      Class A: $2.00 par value, authorized
         10,000,000 shares, issued 6,332,016
         shares in 2004 and 6,275,104 shares
         in 2003                                    12,664,032       12,550,208
      Class C: $0.20 par value, authorized
         7,500,000 shares, issued 6,331,215
         shares in 2004 and 6,469,638 shares
         in 2003                                     1,266,243        1,293,927
                                                 -------------   --------------
   Total common stock                               13,930,275       13,844,135
Additional paid-in capital                          13,813,305       13,569,582
Accumulated other comprehensive income
      (loss) and other items, net of deferred
      taxes                                           (290,305)        (437,973)
Retained earnings                                   16,410,418       15,414,681
Treasury stock at cost (1,303,954 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)                                     (3,325,336)      (3,214,994)
                                                 -------------   --------------
Total stockholders' equity                          40,538,357       39,175,431
                                                 -------------   --------------
   Total liabilities and stockholders' equity    $ 319,315,362   $  316,909,584
                                                 =============   ==============



See accompanying notes to consolidated financial statements.


                                       5
<PAGE>

<PAGE>


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

                                                    Six Months Ended June 30,
                                                      2004            2003
                                                      ----            ----
Cash flows from operating activities:
      Net cash provided by (used in)
      operating activities                       $  46,943,004   $  (25,866,840)
                                                 -------------   --------------
Cash flows from investing activities:
   Securities held to maturity:
      Purchase - fixed maturity securities         (29,806,585)      (7,580,086)
      Calls and maturities - fixed
        maturity securities                          5,653,378        5,183,815
   Securities available for sale:
      Calls and maturities - fixed
         maturity securities                           655,000          360,000
   Purchases of equity securities                      --               (51,921)
   Purchases of short-term investments             (20,986,578)     (11,648,133)
   Sales of short-term investments                  18,296,490       13,875,484
   Purchases of restricted assets                     (179,822)          23,975
   Mortgage, policy, and other loans made          (37,985,756)      (7,616,206)
   Payments received for mortgage,
      real estate, policy, and other loans          18,547,403        5,860,877
   Purchases of property, plant,
      and equipment                                   (620,589)        (614,440)
   Purchases of real estate                         (1,655,862)        (673,888)
   Purchase of subsidiary                             (304,042)              --
   Sale of real estate                                 232,444          477,979
                                                 -------------   --------------

         Net cash used in investing activities     (48,154,519)      (2,402,544)
                                                 -------------   --------------

Cash flows from financing activities:
   Annuity and pre-need contract receipts            2,655,402        2,951,308
   Annuity and pre-need contract withdrawals        (5,245,367)      (5,290,214)
   Repayment of bank loans and notes and
      contracts payable                             (2,270,147)      (2,216,333)
   Other                                                    --           17,967
                                                 -------------   --------------

      Net cash used in financing activities         (4,860,112)      (4,537,272)
                                                 -------------   --------------
Net change in cash                                  (6,071,627)     (32,806,656)

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

Cash at end of period                            $  13,632,731   $    5,392,385
                                                 =============   ==============

See accompanying notes to consolidated financial statements.

                                       6
<PAGE>

            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                            June 30, 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 and six months  ended June 30,  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 six months  ended June 30,  2004 and 2003,  total  comprehensive  income
amounted to $1,473,194 and $2,005,805, respectively.

For the three months ended June 30, 2004 and 2003,  total  comprehensive  income
amounted to $769,711 and $2,306,033, 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, 2004 and 2003
would have been reduced by the following:

                                                     Six Months Ended June 30,
                                                      2004              2003
                                                      ----              ----
Net earnings as reported                            $1,325,526       $3,906,237
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                              $1,325,526       $3,773,237
                                                    ==========       ===========


                                       7
<PAGE>

            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                            June 30, 2004 (Unaudited)

                                                     Six Months Ended June 30,
                                                       2004             2003
                                                       ----             ----
      Net earnings per common share:
        Basic - as reported                         $      .23       $      .74
        Basic - pro forma                           $      .23       $      .71
        Diluted - as reported                       $      .23       $      .71
        Diluted - pro forma                         $      .23       $      .68

4.    Earnings Per Share
      ------------------

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

                                                     Six Months Ended June 30,
                                                       2004              2003
                                                       ----              ----
Numerator:
      Net income                                    $1,325,526       $3,906,237
                                                    ==========       ==========
Denominator:
      Denominator for basic earnings per share-
        weighted-average shares                      5,656,575        5,301,245
                                                    ==========       ==========

      Effect of dilutive securities:
        Employee stock options                         135,496          208,961
        Stock appreciation rights                        1,584            4,724
                                                    ----------       ----------
      Dilutive potential common shares                 137,080          213,930
                                                    ----------       ----------
      Denominator for diluted earnings per
        share-adjusted weighted-average shares
        and assumed conversions                      5,793,655        5,514,247
                                                    ==========       ==========

      Basic earnings per share                      $      .23       $      .74
                                                    ==========       ==========

      Diluted earnings per share                    $      .23       $      .71
                                                    ==========       ==========

                                                    Three Months Ended June 30,
                                                       2004              2003
                                                       ----              ----
Numerator:
      Net income                                    $  923,944       $2,221,187
                                                    ==========       ==========
Denominator:
      Denominator for basic earnings per share-
        weighted-average shares                      5,662,761        5,317,068
                                                    ==========       ==========

      Effect of dilutive securities:
        Employee stock options                          52,007          216,081
        Stock appreciation rights                        1,280            4,793
                                                    ----------       ----------
      Dilutive potential common shares                  53,287          220,874
                                                    ----------       ----------

      Denominator for diluted earnings per
        share-adjusted weighted-average shares
        and assumed conversions                      5,716,048        5,537,942
                                                    ==========       ==========

      Basic earnings per share                      $      .16       $      .42
                                                    ==========       ==========

      Diluted earnings per share                    $      .16       $      .40
                                                    ==========       ==========


                                       8
<PAGE>

            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                           June 30, 2004, (Unaudited)

5.  Business Segment
    ----------------
<TABLE>
<CAPTION>

                                       Life             Cemetery/                           Reconciling
                                     Insurance          Mortuary            Mortgage           Items         Consolidated
For the Six Months Ended
June 30, 2004
-------------
<S>                                 <C>                <C>                 <C>            <C>                <C>
   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 Six Months Ended
June 30, 2003
-------------
   Revenues from
      external customers            $ 14,774,646       $ 5,828,578         $57,743,230    $            --    $ 78,346,454

   Intersegment revenues               4,715,862                --                  --         (4,715,862)             --

   Segment profit (loss)
      before income taxes                603,100           (89,628)          5,327,398                 --       5,840,870

   Identifiable assets               304,595,198        43,015,895          24,293,368        (52,165,995)    319,738,466

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

For the Three Months Ended
June 30, 2003
-------------
   Revenues from
      external customers            $  7,338,524       $ 2,987,765         $33,770,468    $            --    $ 44,096,757

   Intersegment revenues               2,442,589                --                  --         (2,442,589)             --

   Segment profit                        715,561             7,651           2,744,376                 --       3,467,588

</TABLE>

                                       9
<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                   Notes to Consolidated Financial Statements
                           June 30, 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  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.

8. Subsequent Event
   ----------------

On July 16, 2004, the Company entered into an employment agreement with Scott M.
Quist, its President, General Counsel and Chief Operating Officer. The agreement
is  effective as of December 4, 2003 and has a five-year  term,  but the Company
has agreed to renew the  agreement  on December 4, 2008 and 2013 for  additional
five-year terms, provided Mr. Quist performs his duties with usual and customary
care and diligence. Under the terms of the agreement, Mr. Quist is to devote his
full time to the Company  serving as its  President,  General  Counsel and Chief
Operating Officer at not less than his current salary and benefits.  The Company
also  agrees to  maintain  a group term life  insurance  policy of not less than
$1,000,000 on Mr. Quist's life and a whole life  insurance  policy in the amount
of $500,000 on Mr. Quist's life. In the event of disability,  Mr. Quist's salary
would be continued for up to five years at 75% of its current level.

In the event of a sale or merger of the Company and Mr. Quist is not retained in
his current  position,  the Company  would be obligated to continue Mr.  Quist's
current  compensation and benefits for seven years following the merger or sale.
The  agreement  further  provides  that Mr. Quist is entitled to receive  annual
retirement  benefits beginning (i) one month from the date of his retirement (to
commence no sooner than age 65), (ii) five years following complete  disability,
or (iii) upon  termination of his employment  without  cause.  These  retirement
benefits are to be paid for a period of ten years in annual  installments in the
amount equal to 75% of his then current rate of  compensation.  However,  in the
event that Mr. Quist dies prior to receiving all retirement benefits thereunder,
the remaining benefits are to be paid to his heirs. The Company accrued $328,000
in fiscal 2003 to cover the present  value of  anticipated  retirement  benefits
under the employment agreement.

                                       10
<PAGE>

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, 2004,  Security  National  Mortgage Company
("SNMC")  experienced  a decrease in revenue and expenses due to the decrease in
loan volume of its operations as a result of increased interest rates. 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
6,551 ($1,016,000,000) and 9,995 ($1,462,000,000) loans,  respectively,  for the
six months ended June 30, 2004 and 2003.

Results of Operations

Six Months Ended June 30, 2004 Compared to Six Months Ended June 30, 2003

Total revenues  decreased by  $16,036,000,  or 20.5%, to $62,310,000 for the six
months ended June 30, 2004,  from  $78,346,000 for the six months ended June 30,
2003. Contributing to this decrease in total revenues was a $17,589,000 decrease
in mortgage fee income, and a $567,000 decrease in net investment income.

Insurance premiums and other considerations  increased by $1,210,000,  or 10.4%,
to $12,800,000 for the six months ended June 30, 2004, from  $11,590,000 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 $567,000,  or 6.8%, to $7,798,000 for the six
months ended June 30, 2004, from  $8,365,000 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 $658,000,  or 12.4%, to $5,953,000
for the six months  ended June 30,  2004,  from  $5,295,000  for the  comparable
period in 2003.  This  increase was  primarily  due to  additional  cemetery and
mortuary sales.

Mortgage fee income  decreased by $17,589,000,  or 33.2%, to $35,323,000 for the
six months ended June 30, 2004, from  $52,912,000  for the comparable  period in
2003.  This decrease was primarily  attributable  to a decrease in the number of
loan  originations  during the six months of 2004 due to an increase in interest
rates resulting in fewer borrowers refinancing their mortgage loans.



                                       11
<PAGE>

Total benefits and expenses were $60,483,000, or 97.1% of total revenues for the
six months ended June 30,  2004,  as compared to  $72,506,000  or 92.6% 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 $720,000,  or 6.6%, to $11,672,000
for the six months ended June 30, 2004,  from  $10,952,000,  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 $496,000, or 21.9%, to $2,765,000 for the six months ended June 30,
2004,  from  $2,269,000,  for the comparable  period in 2003.  This increase was
primarily due to the additional insurance premiums for the period.

General and  administrative  expenses  decreased by  $12,513,000,  or 22.2%,  to
$43,849,000  for the six months ended June 30, 2004, from  $56,362,000,  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 six months of 2004.

Interest  expense  decreased by $739,000,  or 41.1%,  to $1,060,000  for the six
months ended June 30, 2004, from $1,799,000,  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
$13,000,  or 1.2%, to $1,137,000,  for the six months ended June 30, 2004,  from
$1,124,000 for the comparable period in 2003. This increase was primarily due to
increased sales.

Second Quarter of 2004 Compared to Second Quarter of 2003

Total revenues  decreased by $13,059,000,  or 29.6% to $31,037,000 for the three
months ended June 30, 2004, from $44,097,000 for the three months ended June 30,
2003. Contributing to this decrease in total revenues was a $13,902,000 decrease
in mortgage fee income, and a $203,000 decrease in net investment income.

Insurance premiums and other considerations  increased by $678,000, or 11.8%, to
$ 6,404,000 for the three months ended June 30, 2004,  from  $5,726,000  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 $203,000,  or 4.6%, to $4,242,000  for the
three months ended June 30, 2004, from  $4,445,000 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 second quarter.

Net mortuary and cemetery  sales  increased by $186,000,  or 6.9%, to $2,896,000
for the three months ended June 30, 2004,  from  $2,710,000  for the  comparable
period in 2003.  This  increase was  primarily  due to  additional  cemetery and
mortuary sales.


                                       12
<PAGE>

Mortgage fee income  decreased by $13,901,000,  or 44.6%, to $17,255,000 for the
three months ended June 30, 2004, from $31,156,000 for the comparable  period in
2003.  This decrease was primarily  attributable  to a decrease in the number of
loan  originations  during the  second  quarter  of 2004 due to an  increase  in
interest rates resulting in fewer borrowers refinancing their mortgage loans.

Total benefits and expenses were $29,717,000, or 95.7% of total revenues for the
three months ended June 30 2004, as compared to  $40,629,000,  or 92.1% 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 $439,000,  or 8.6%, to $5,551,000
for the three months ended June 30, 2004,  from  $5,112,000  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 $256,000,  or 19.5%,  to $1,566,000 for the three months ended June
30, 2004, from  $1,310,000 for the comparable  period in 2003. This increase was
primarily due to the additional insurance premiums for the period.

General and  administrative  expenses  decreased by  $11,302,000,  or 34.6%,  to
$21,367,000 for the three months ended June 30, 2004,  from  $32,669,000 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 second quarter of 2004.

Interest  expense  decreased  by $282,000,  or 28.9%,  to $694,000 for the three
months ended June 30, 2004,  from  $976,000 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  decreased by
$23,000,  or 4.1%,  to $540,000 for the three  months ended June 30, 2004,  from
$563,000 for the comparable  period in 2003.  This decrease was primarily due to
the sales mix being greater for cemetery sales than mortuary. Cost of goods sold
is lower for cemetery versus mortuary.

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.


                                       13
<PAGE>

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  $76,194,000 as of June 30, 2004,
compared to $51,564,000 as of December 31, 2003.  This represents 49% and 48% of
the total  insurance-related  investments  as of June 30, 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
June 30, 2004 and December 31, 2003, 1% ($1,316,000)  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.

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, 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 $55,877,000 as of June 30, 2004, as compared to $57,039,000 as
of  December  31,  2003.  Stockholders'  equity as a percent  of  capitalization
increased to 73% as of June 30, 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 June 30, 2004, $27,368,000 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, 2003.


                                       14
<PAGE>

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.

                           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.


                                       15
<PAGE>

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 of NGU (estimated to be $2,133,625 through September
30, 2004) include  fraudulent  inducement  relative to entering into a contract,
fraud,  breach of contract as to commissions  and production  bonuses as well as
policy  fees,  certain  dues and  debits of other  agents,  attorney's  fees and
exemplary  damages as well as seeking an accounting  with the  appointment of an
auditor 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 case, which motion
was denied.  The Company  anticipates  filing another motion for partial summary
judgment  prior to trial. 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.

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 (7)
      3.2.  Amended Bylaws (10)
      4.1.  Specimen Class A Stock Certificate (1)


                                       16
<PAGE>

      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
      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 June 30, 1989
      (3)   Incorporated  by reference from Annual Report on Form 10-K, as filed
            on June 30, 1994
      (4)   Incorporated  by  reference  from  Schedule  14A  Definitive   Proxy
            Statement,  filed August 29, 2000,  relating to the Company's Annual
            Meeting of Shareholders
      (5)   Incorporated  by reference from Annual Report on Form 10-K, as filed
            on April 16, 2001
      (6)   Incorporated  by reference from Annual Report on Form 10-K, as filed
            on April 3, 2002
      (7)   Incorporated  by  reference  from  Report on Form  8-K-A as filed on
            January 8, 2003
      (8)   Incorporated  by reference from Annual Report on Form 10-K, as filed
            on April 15, 2003
      (9)   Incorporated  by  reference  from  Schedule  14A  Definitive   Proxy
            Statement,  Filed on June 5, 2003 relating to the  Company's  Annual
            Meeting of Shareholders
      (10)  Incorporated  by  reference  from  Report on Form 10-Q,  as filed on
            November 14, 2003
      (11)  Incorporated by reference from Report on Form 8-K, as filed on March
            29, 2004
      (12)  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


                                       17
<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 13, 2004                   By:    /s/George R. Quist
                                                -------------------------------
                                                George R. Quist
                                                Chairman of the Board and Chief
                                                Executive Officer
                                                (Principal Executive Officer)


DATED: August 13, 2004                   By:    /s/Stephen M. Sill
                                                -------------------------------
                                                Stephen M. Sill
                                                Vice President, Treasurer and
                                                Chief Financial Officer
                                                (Principal Financial and
                                                Accounting Officer)




                                       18