UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

             [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
                       THE SECURITIES EXCHANGE ACT OF 1934
              For the quarterly period ended September 30, 2007, or

              [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
                 For the Transition Period from _____ to ______

                         Commission file number: 0-9341

                     SECURITY NATIONAL FINANCIAL CORPORATION
             (Exact name of registrant as specified in its charter)

              UTAH                                    87-0345941
------------------------------                    -----------------
 (State or other jurisdiction of                  (I.R.S. Employer
  incorporation or organization)                  Identification No.)

 5300 South 360 West, Suite 250, Salt Lake City, Utah            84123
-----------------------------------------------------          -------
 (Address of principal executive office)                       (Zip Code)

     Registrant's telephone number, including area code:    (801) 264-1060
                                                            --------------

     Securities registered pursuant to Section 12(b) of the Act: None

     Securities registered pursuant to Section 12(g) of the Act:

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 by check mark whether the registrant is a large  accelerated  filer, an
accelerated  filer, or a  non-accelerated  filer. See definition of "accelerated
filer and large accelerated filer" in Rule 12b-2 of the Securities  Exchange Act
of 1934. (Check one)

Large accelerate filer   [ ] Accelerated filer  [ ] Non-accelerated filer [X}

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Securities Exchange Act of 1934): Yes No [X] ---

Indicate the number of shares outstanding of each of the registrant's classes of
common stock, as of the latest practicable date.

Class A Common Stock, $2.00 par value                6,382,867
-------------------------------------                ---------
        Title of Class                      Number of Shares Outstanding as of
                                                   October 31, 2007

Class C Common Stock, $.20 par value                 8,124,474
------------------------------------                 ---------
        Title of Class                      Number of Shares Outstanding as of
                                                   October 31, 2007

  ============================================================================


<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
                                    FORM 10-Q

                        QUARTER ENDED SEPTEMBER 30, 2007

                                TABLE OF CONTENTS


                         PART I - FINANCIAL INFORMATION



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

        Condensed Consolidated Balance Sheets - September 30, 2007
        and December 31, 2006, (unaudited)...............................3-4

        Condensed Consolidated Statements of Earnings for the
        Three and Nine Months Ended September 30, 2007 and 2006
        (unaudited)........................................................5

        Condensed Consolidated Statements of Cash Flows for the
        Nine Months ended September 30, 2007 and 2006 (unaudited)..........6

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

Item 2  Management's Discussion and Analysis of Financial Condition
        and Results of Operations......................................16-22

Item 3  Quantitative and Qualitative Disclosures about Market Risk........22
------

Item 4  Controls and Procedures...........................................22
------


                           PART II - OTHER INFORMATION

        Other Information..............................................22-29

        Signature Page....................................................30

        Certifications.................................................31-33




<PAGE>


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

<TABLE>
<CAPTION>


                                                                                        September 30,        December 31,
    Assets                                                                                   2007                2006
                                                                                       -----------------    ----------------
         Investments:
           <S>                                                                           <C>                  <C>
            Fixed maturity securities, held to maturity, at amortized cost                 $ 95,705,942       $  98,317,519
            Fixed maturity securities, available for sale, at estimated fair value            2,901,343           3,417,531
            Equity securities, available for sale, at estimated fair value                    5,705,100           5,261,695
            Mortgage loans on real estate and construction  loans,
               net of allowances for losses
                                                                                             83,213,833          85,135,011
            Real estate, net of accumulated depreciation                                      4,655,510           5,002,853
            Policy, student and other loans net of allowance
               for doubtful accounts
                                                                                             16,472,969          12,846,986
            Short-term investments                                                            6,457,748           4,586,828
            Accrued investment income                                                         3,191,043           2,684,029
                                                                                           ------------        ------------
         Total investments                                                                  218,303,488         217,252,452
                                                                                           -----------         ------------
         Cash and cash equivalents                                                            6,888,959          10,376,585
         Mortgage loans sold to investors                                                    93,003,056          59,817,248
         Receivable, net                                                                     17,138,233          14,878,118
         Restricted assets of cemeteries and mortuaries                                       5,624,098           5,430,870
         Cemetery perpetual care trust investments                                            1,508,740           1,306,984
         Receivable from reinsurers                                                             726,774             700,850
         Cemetery land and improvements                                                       9,313,597           8,745,424
         Deferred policy and pre-need contract acquisition costs                             29,953,496          28,395,762
         Property and equipment, net                                                         14,866,155          14,059,529
         Cost of insurance acquired                                                          11,157,998          11,882,047
         Goodwill                                                                             1,075,039             683,191
         Other                                                                                4,034,485           3,866,123
                                                                                           ------------        ------------
         Total assets                                                                      $413,594,118        $377,395,183
                                                                                           ============        ============
</TABLE>

See accompanying notes to condensed consolidated financial statements.


<PAGE>
<TABLE>
<CAPTION>


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



                                                                                      September 30,          December 31,
                                                                                           2007                  2006
                                                                                     --------------         -------------
         Liabilities and Stockholders' Equity
         <S>                                                                             <C>                   <C>
         Liabilities
         Future life, annuity, and other benefits                                        $274,461,602          $268,403,765
         Unearned premium reserve                                                           4,907,694             4,519,387
         Bank loans payable                                                                35,195,784             6,923,344
         Notes and contracts payable                                                          909,571               747,188
         Deferred pre-need cemetery and mortuary contract revenues                         12,331,048            11,533,798
         Accounts payable                                                                   1,765,112             1,820,178
         Other liabilities and accrued expenses                                            10,859,891            11,611,033
         Income taxes                                                                      16,295,092            16,587,284
                                                                                         ------------          ------------
         Total liabilities                                                                356,725,794           322,145,977
                                                                                         ------------          ------------
         Non-Controlling Interest in Perpetual Care Trusts                                  2,366,429             2,278,510
                                                                                         ------------          ------------

         Stockholders' Equity:
         Common stock:
         Class A: $2.00 par value, 20,000,000 shares
               authorized; issued 7,507,360 shares in 2007 and
               7,533,230 shares in 2006

                                                                                           15,014,720            15,066,460
         Class   B non-voting common stock-$1.00 par value; 5,000,000 shares
                 authorized; none issued or outstanding
                                                                                            --                    --
         Class   C: convertible common stock - $0.20 par value; 15,000,000
                 shares authorized; issued 8,124,474 shares in 2007 and
                 7,117,591 shares in 2006

                                                                                            1,624,895             1,423,518
         Additional paid-in capital                                                        17,010,745            17,064,488
         Accumulated other comprehensive income and other items                             1,651,326             1,703,155
         Retained earnings                                                                 21,512,296            20,495,063
         Treasury stock at cost - 1,124,493 Class A shares and
               -0- Class C shares in 2007; 1,195,127 Class A shares and
               145,045 Class C shares in 2006

                                                                                           (2,312,087)           (2,781,988)
                                                                                         -----------           ------------
                     Total stockholders' equity                                            54,501,895            52,970,696
                                                                                         ------------          ------------
         Total Liabilities and Stockholders' Equity                                      $413,594,118          $377,395,183
                                                                                         ============          ============
</TABLE>

See accompanying notes to condensed consolidated financial statements.


<PAGE>


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




                                                                  Three Months Ended               Nine Months Ended
                                                                    September 30,                    September 30,
Revenues:                                                          2007           2006            2007           2006
                                                                   ----           ----            ----           ----
<S>                                                             <C>            <C>             <C>            <C>
 Insurance premiums and other considerations                    $  8,426,016   $  7,537,345    $ 24,294,625   $ 22,494,867
 Net investment income                                             7,637,865      5,742,427      24,590,361     16,321,485
 Net mortuary and cemetery sales                                   3,212,772      2,864,920      10,157,891      9,073,938
 Realized gains on investments and other assets                        2,053        731,658         738,721        789,329
 Mortgage fee income                                              31,998,895     21,602,097      94,600,013     56,161,784
 Other                                                               386,340         96,328         644,370        283,514
                                                                 -----------    -----------    ------------   ------------
Total revenues                                                    51,663,941     38,574,775     155,025,981    105,124,917
                                                                 -----------    -----------    ------------   ------------

Benefits and expenses:
Death benefits                                                     3,997,893      3,367,393      12,171,871     10,757,083
Surrenders and other policy benefits                                 566,596        405,824       1,638,798      1,403,185
Increase in future policy benefits                                 3,133,326      2,931,798       8,807,311      8,279,678
Amortization of deferred policy and pre-need
 acquisition costs and cost of insurance acquired                  1,456,808      1,383,426       4,180,293      2,948,423
General and administrative expenses:
      Commissions                                                 24,609,493     15,997,433      71,904,695     42,045,749
      Salaries                                                     6,137,254      4,469,881      17,824,099     12,959,734
      Other                                                        9,186,678      5,996,090      24,933,545     17,196,515
Interest expense                                                   3,075,886      1,331,487      10,333,211      3,440,038
Cost of goods and services sold-
      Mortuaries and cemeteries
                                                                     637,520        557,908       1,952,443      1,765,953
                                                                 -----------    -----------    ------------   ------------
Total benefits and expenses                                       52,801,454     36,441,240     153,746,266    100,796,358
                                                                 -----------    -----------    ------------   ------------

Earnings (loss) before income taxes                               (1,137,513)     2,133,535       1,279,715      4,328,559
Income tax (expense) benefit                                         475,069       (592,238)       (166,590)    (1,049,957)
                                                                 -----------    -----------    ------------   -------------
Net earnings (loss)                                              $  (662,444)   $ 1,541,297    $  1,113,125   $   3,278,602
                                                                  ==========     ==========    ============   =============

Net earnings (loss) per Class A equivalent
   common share                                                      $(0.09)          $0.22           $0.16          $0.47
                                                                     =======          =====           =====          =====

 Net earnings (loss) per Class A equivalent
     common share-assuming dilution                                  $(0.09)         $ 0.22           $0.15          $0.47
                                                                     =======         ======           =====          =====

 Weighted-average Class A equivalent common
     shares outstanding                                            7,146,124      6,969,001       7,095,691      6,954,329
                                                                   =========      =========       =========      =========

 Weighted-average Class A equivalent common
     shares outstanding assuming-dilution                          7,146,124      7,085,531       7,305,029      7,088,205
                                                                   =========      =========       =========      =========
</TABLE>


Earnings  (loss) per share  amounts  have been  adjusted  retroactively  for the
effect  of annual  stock  dividends.  The  weighted-average  shares  outstanding
includes the  weighted-average  Class A common  shares and the  weighted-average
Class C common shares  determined  on an equivalent  Class A common stock basis.
Net earnings  per common share  represent  net earnings per  equivalent  Class A
common share. Net earnings per Class C common share is equal to one-tenth (1/10)
of such amount.

See accompanying notes to condensed consolidated financial statements.


<PAGE>


                     SECURITY NATIONAL FINANCIAL CORPORATION
                                AND SUBSIDIARIES
                 CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (Unaudited)
<TABLE>
<CAPTION>



                                                                                                Nine Months Ended
                                                                                                  September 30,
                                                                                            2007                 2006
                                                                                          --------              --------

         <S>                                                                            <C>                     <C>
         Cash flows from operating activities:
              Net cash provided by (used in) operating activities                        $(24,558,802)          $23,210,232
                                                                                         ------------           -----------

         Cash flows from investing activities: Securities held to maturity:
              Purchase - fixed maturity securities                                          (3,741,486)          (8,308,157)
              Calls and maturities - fixed maturity securities                               6,391,892            2,802,159
         Securities available for sale:
              Purchase - fixed maturity securities                                            (102,849)            (173,262)
              Sales - equity securities                                                        823,063           10,002,660
         Purchases of short-term investments                                               (12,570,340)          (9,299,253)
         Sales of short-term investments                                                    10,699,420                --
         Purchases of restricted assets                                                       (183,448)             (63,943)
         Change in assets for perpetual care trusts                                           (145,930)             (58,433)
         Amount received for perpetual care trusts                                              87,919               85,855
         Mortgage, policy, and other loans made                                            (59,027,000)         (51,337,926)
         Payments received for mortgage, policy, and other loans                            57,240,984           44,156,058
         Purchases of property and equipment                                                (2,486,470)          (1,241,988)
         Disposal of property and equipment                                                    730,542              679,769
         Purchases of real estate                                                           (1,223,983)          (1,830,877)
         Purchase of subsidiary                                                                (27,971)               --
         Sale of real estate                                                                 1,335,183             2,914,996
                                                                                          ------------          ------------
         Net cash provided by (used in) investing activities                                (2,200,474)         (11,672,342)
         Cash flows from financing activities:
         Annuity contract receipts                                                           4,554,778            4,484,563
         Annuity contract withdrawals                                                       (9,755,104)          (8,325,520)
         Sale of treasury stock                                                                469,901              454,701
         Repayment of bank loans and notes and
              contracts payable                                                             (2,504,778)          (2,535,312)
         Proceeds from borrowing on bank loans                                              30,506,853              750,000
                                                                                         -------------         ------------
         Net cash used in financing activities                                              23,271,650           (5,171,568)
                                                                                         -------------         -------------
         Net change in cash and cash equivalents                                            (3,487,626)           6,366,322

         Cash and cash equivalents at beginning of period                                   10,376,585           16,632,966
                                                                                         -------------         ------------

         Cash and cash equivalents at end of period                                       $  6,888,959         $ 22,999,288
                                                                                          ============         ============
</TABLE>


See accompanying notes to condensed consolidated financial statements.


<PAGE>



            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2007 (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 disclosures  required by accounting  principles  generally
accepted in the United  States of America  for  complete  financial  statements.
These financial  statements  should be read in conjunction with the consolidated
financial  statements  of the  Company  and  notes  thereto  for the year  ended
December 31, 2006,  included in the  Company's  Annual Report on Form 10-K (file
number 0-9341).  In the opinion of management,  all  adjustments  (consisting of
normal recurring  accruals)  considered  necessary for a fair  presentation have
been included.  Operating  results for the three and nine months ended September
30, 2007 are not necessarily  indicative of the results that may be expected for
the year ending December 31, 2007.

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

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

Certain 2006 amounts have been  reclassified  to bring them into conformity with
the 2007 presentation.

2.   Recent Accounting Pronouncements

In July 2006,  the FASB  issued FIN 48,  Accounting  for  Uncertainty  in Income
Taxes, which attempts to set out a consistent  framework for preparers to use to
determine the appropriate level of valuation  allowance tax reserves to maintain
for deferred tax assets relating to uncertain tax positions. This interpretation
for FASB  Statement  No. 109 uses a two-step  approach  wherein a tax benefit is
recognized  if a position  is  more-than-likely-than-not  to be  sustained.  The
amount of the benefit is then  measured to be the highest tax benefit,  which is
greater  than  fifty  percent  likely  to be  realized.  FIN 48  also  sets  out
disclosure requirements to enhance transparency of an entity's tax reserves. The
Company  adopted  this  Interpretation  as of January 1,  2007.  Management  has
considered  the  amounts and the  probabilities  of the  outcomes  that could be
realized upon ultimate  settlement and believes that it is  more-likely-than-not
that the Company's  recorded income tax benefits will be fully  realized.  There
were no  unrecognized  tax  benefits at the  beginning  or at the end of the six
months ended September 30, 2007.

The Company records interest earned on income-tax  refunds in other income,  and
penalties and interest  charged on tax deficiencies in interest  expense.  As of
the date of adoption,  there were no amounts  accrued for  penalties or interest
related to unrecognized tax benefits.

In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements  ("SFAS
157").  SFAS 157 defines fair value,  establishes a framework for measuring fair
value, and expands disclosures about fair value  measurements.  SFAS 157 will be
applied prospectively and is effective for fiscal years beginning after November
15,  2007,  and interim  periods  within  those  fiscal  years.  SFAS 157 is not
expected  to have a  material  impact on the  Company's  consolidated  financial
statements.



<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2007 (Unaudited)


In  February  2007,  the FASB  issued  SFAS No 159,  The Fair  Value  Option for
Financial  Assets and  Financial  Liabilities  - including  an amendment of FASB
Statement  No 115 ("SFAS  159").  SFAS 159 allows  measurement  at fair value of
eligible  financial  assets and liabilities  that are not otherwise  measured at
fair value. If the fair value option for an eligible item is elected, unrealized
gains and losses for that item shall be  reported  in current  earnings  at each
subsequent reporting date. SFAS 159 also establishes presentation and disclosure
requirements  designed  to draw  comparison  between the  different  measurement
attributes the Company elects for similar types of assets and liabilities.  This
statement is effective for fiscal years  beginning  after November 15, 2007. The
Company is in the process of evaluating the application of the fair value option
and its effect on its financial position and results of operations.

3.   Comprehensive Income

For the three  months ended  September  30, 2007 and 2006,  total  comprehensive
(loss)  income  amounted to  $(1,379,000)  and  $1,255,000,  respectively.  This
decrease of  $2,634,000  was primarily the result of a decrease in net income of
$2,204,000,  a decrease in derivatives of $168,000, and a decrease in unrealized
gains and losses in securities available for sale of $262,000.

For the nine  months  ended  September  30, 2007 and 2006,  total  comprehensive
income  amounted to $1,061,000 and  $3,915,000,  respectively.  This decrease of
$2,854,000 was primarily the result of a decrease in net income of $2,165,000, a
decrease in  derivatives  of $292,000,  and a decrease in  unrealized  gains and
losses in securities available for sale of $397,000.

4.   Stock-Based Compensation

The Company  accounts for its  stock-based  compensation  plans according to the
provisions of Statement of Financial Accounting Standards No. 123R, "Share-Based
Payment" ("FAS 123R"). Under SFAS 123R, all stock-based compensation is measured
at the grant  date,  based on the fair  value of the  option  or  award,  and is
recognized  as an expense  in  earnings  over the  requisite  service,  which is
typically through the date the options vest.

The Company adopted SFAS 123R using the modified  prospective method. Under this
method, for all stock-based  options and awards granted prior to January 1, 2006
that remain outstanding as of that date, compensation cost is recognized for the
unvested  portion  over  the  remaining  requisite  service  period,  using  the
grant-date fair value measured under the original provisions of SFAS 123 for pro
forma and  disclosure  purposes.  Furthermore,  compensation  costs will also be
recognized  for any awards  issued,  modified,  repurchased  or cancelled  after
January 1, 2006.

The Company  utilized the  Black-Scholes-Merton  model for  calculating the fair
value of stock awards and stock options.

No options were granted for the three and nine months ended  September 30, 2007.
Total compensation  costs relating to stock-based  compensation was not material
during the three and nine months ended September 30, 2007.



<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2007 (Unaudited)


The  Company's  Board of  Directors  granted  stock  options in 2004 to Scott M.
Quist, the Company's  President and Chief Operating  Officer,  to purchase up to
1,000,000  shares of Class C common  stock at exercise  prices of $.323 and $.36
per share.  On May 31, 2007, Mr. Quist made a cashless  exercise of such options
to  purchase  a total of  1,157,625  shares of Class C common  stock that he was
entitled to receive, after adjustments for 5% stock dividends the Company issued
in 2005, 2006 and 2007.

In connection with the exercise of such options on a cashless  basis,  Mr. Quist
delivered a total of 58,376  shares of Class A common  stock to the Company that
he held in  exchange  for all the Class C shares he would be entitled to receive
for exercising the options.  Inasmuch as there were 6,966,849  shares of Class C
common  stock  outstanding  as of May  31,  2007  out of a  total  of  7,500,000
authorized  shares of Class C common stock, the Company could legally issue only
533,151  shares of Class C common  stock to Mr.  Quist,  leaving  a  balance  of
624,474 Class C common shares owing to him.

In order to issue the  additional  shares of Class C common  shares owing to Mr.
Quist,  the Board of  Directors  approved on July 13, 2007 an  amendment  to the
Company's Articles of Incorporation to increase the authorized number of Class C
common shares from 7,500,000 shares to 15,000,000  shares.  Because  stockholder
approval was also required to amend the Articles of  Incorporation,  the Company
scheduled a Special  Stockholders  Meeting on September  21, 2007 to approve the
amendment to the Articles of Incorporation to increase the authorized  number of
shares of Class C common stock to 15,000,000 shares.  The stockholders  approved
the  amendment  to the  Articles of  Incorporation  at the Special  Stockholders
Meeting  that  increased  the  authorized  number  of Class C common  shares  to
15,000,000 shares, and, as a result, the Company was able to issue Mr. Quist the
additional 624,474 shares of Class C common stock that were owed pursuant to his
exercise of stock options.



<PAGE>
            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2007 (Unaudited)


5.    Earnings Per Share

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

                                                        Three Months Ended
                                                           September 30,
                                                      2007               2006
                                                     -----              -----
       Numerator:
              Net earnings (loss)                $(662,444)          $1,541,297
                                                ==========           ==========
       Denominator:
              Basic weighted-average shares
               outstanding                       7,146,124            6,960,001
                                                ----------          -----------
       Effect of dilutive securities:
            Employee stock options                  --                 124,490
            Stock appreciation rights               --                   1,040
            Employee deferred compensation rights   --                    --
                                                ----------         ------------
                                                    --                 125,530
       Dilutive potential common shares         ----------         ------------
                                                 7,146,124            7,085,531
         Diluted weighted-average shares
            outstanding                         ==========         ============

         Basic earnings (loss) per share            $(0.09)               $0.22
                                                    ======                =====

         Diluted earnings (loss) per share          $(0.09)               $0.22
                                                    ======                =====


Earnings  per share  amounts  have been  adjusted for the effect of annual
stock dividends.

                                                    Nine Months Ended
                                                     September 30,
                                                   2007          2006
                                                  ------       ------
         Numerator:
              Net earnings (loss)             $1,113,125             $3,278,602
                                              ==========             ==========
         Denominator:
              Basic weighted-average
               shares outstanding              7,095,691              6,954,329
                                              ----------             ----------
         Effect of dilutive securities:
              Employee stock options             174,856                132,795
              Stock appreciation rights            --                     1,081
              Employee deferred compensation
                rights                            34,482                  --
                                              ----------            -----------

         Dilutive potential common shares        209,338                133,876
                                              ----------            -----------
           Diluted weighted-average
              shares outstanding               7,305,029              7,088,205
                                              ==========            ===========

         Basic earnings per share                 $0.16                   $0.47
                                                  =====                   =====

         Diluted earnings per share               $0.15                   $0.46
                                                  =====                   =====


Earnings  per share  amounts  have been  adjusted for the effect of annual
stock dividends.


<PAGE>
<TABLE>
<CAPTION>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2007 (Unaudited)

6.  Business Segment
                                                         Life       Cemetery/                   Reconciling
                                                       Insurance    Mortuary     Mortgage          Items      Consolidated
   <S>                                              <C>            <C>           <C>           <C>            <C>
   For the Three Months Ended
   September 30, 2007
   Revenues from
     external customers                             $11,796,377    $3,696,222     $36,171,342   $       --        $51,663,941

   Intersegment revenues                              2,189,160        23,001         120,753     (2,332,914)        --

   Segment profit (loss)
     Before income taxes                                974,792       267,801      (2,380,106)        --           (1,137,513)

   For the Three Months Ended
   September 30, 2006
   Revenues from
     external customers                             $10,932,078    $3,908,464     $23,734,233  $        --        $38,574,775

   Intersegment revenues                              1,119,078        23,001         103,139      (1,245,218)        --

   Segment profit (loss)
     Before income taxes                                993,541       662,308         477,686        --             2,133,535

   For the Nine Months Ended
   September 30, 2007
   Revenues from
     external customers                             $35,023,638   $11,823,233    $108,179,110  $        --       $155,025,981

   Intersegment revenues                              5,294,222        69,003         363,097     (5,726,322)        --

   Segment profit (loss)
     before income taxes                              2,619,906     1,286,531     (2,626,722)        --             1,279,715

   Identifiable assets                              393,303,995    60,185,223      20,647,581    (60,542,681)     413,594,118

   For the Nine Months Ended
   September 30, 2006
   Revenues from
     External customers                             $32,541,462   $10,677,636     $61,905,819        --          $105,124,917

   Intersegment revenues                              3,773,545        69,003         315,757     (4,158,305)        --

   Segment profit (loss)
     before income taxes                              3,046,942     1,267,436          14,181        --             4,328,559

   Identifiable assets                               356,839,984    54,111,387    19,571,930      (59,248,912)     371,274,389


</TABLE>

<PAGE>


            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2007, (Unaudited)


7.   Other Business Activity

On March 5, 2007, the Company received a proposed consent order from the Florida
Office of Insurance  Regulation  concerning  the New Success Life  Program,  the
higher education product previously being marketed and sold by Southern Security
Life. The proposed order states that as a result of an investigation the Florida
Office has determined  that Southern  Security Life violated  Florida law (i) by
knowingly making statements, sales presentations,  omissions or comparisons that
misrepresented  the  benefits,  advantages,  or  terms of the New  Success  Life
Program,  and  (ii)  by  knowingly  making,  advertisements,  announcements,  or
statements containing representations that were untrue or misleading.

The proposed order would require  Security  National Life and Southern  Security
Life to  immediately  cease and  desist  from  making  any  false or  misleading
representations  to  Florida  consumers  suggesting  that the New  Success  Life
Program would  accumulate  enough value to pay for college expenses in full. The
proposed order would also require Security  National Life and Southern  Security
Life to agree to no longer  market or sell the New Success  Life  Program in the
State of Florida. In addition, Security National Life and Southern Security Life
would be required to send a written  notice to Florida  consumers  who purchased
the New Success Life Program on or after January 1, 1998 stating that the higher
education  program is a whole life  insurance  product,  with a term and annuity
rider, and not a college trust fund, savings plan, or other program,  and it may
not necessarily pay college expenses in full from the accumulated value.

Moreover,  the  written  notice is to provide  an  opportunity  for the  Florida
consumers who purchased the New Success Life Program on or after January 1, 1998
to cancel their policy and be given a full refund,  including all premiums paid,
together with interest at the agreed upon rate in the original contract. If each
of the Florida  consumers  who  purchased  the New Success  Life  Program  after
January 1, 1998 was to cancel his or her policy and  receive a refund,  the cost
to the  Company  to refund  all  premiums  paid,  including  interest,  would be
approximately $8,200,000, an amount in excess of the assets of Southern Security
Life.

The  proposed  consent  order  would also  require  Security  National  Life and
Southern  Security  Life to  issue  refunds  including  interest  to the  eleven
policyholders  whose affidavits were taken in connection with the administrative
complaint that the Florida  Office had  previously  filed against Franz Wallace,
the former National Sales Director of Southern Security Life.  Security National
Life and Southern Security Life would additionally be required to issue refunds,
including interest,  to any Florida policyholder in the New Success Life Program
who had filed a complaint with the Florida  Department of Financial  Services or
whose  coverage had lapsed.  Furthermore,  Security  National  Life and Southern
Security Life would be required to notify the state insurance department in each
state in which the New  Success  Life  Program is  marketed of the order and any
complaint that Southern  Security Life received relating to the New Success Life
Program from  policyholders in that state.  Finally,  Security National Life and
Southern  Security Life would be required to pay the Florida Office a penalty of
$100,000 and administrative costs of $5,000.

The Company disputes the terms of the proposed consent order. The Company is not
aware of specific concerns that the Florida Office has with the New Success Life
Program  because it has received no specific  administrative  complaint from the
Florida Office nor is it aware of any recent market conduct examination that the
Florida  Office has conducted  relative to the program.  The Company  intends to
vigorously  oppose the proposed consent order. The Company is currently  engaged
in  discussions  with the  Florida  Office in an effort  to settle  the  dispute
concerning the proposed  order. If the Company is unable to reach a satisfactory
resolution with the

<PAGE>

            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2007, (Unaudited)


7.   Other Business Activity (continued)

Florida  Office with respect to the terms of the proposed  consent order and the
Florida  Office  issues a similar  order,  the  Company  intends to take  action
necessary to protect its rights and  interests,  including  requesting a hearing
before an administrative law judge to oppose the order. The Company believes any
potential  liability  would be limited to the net  assets of  Southern  Security
Life, which are approximately $3,914,000.

In June 2007,  the  Company  completed  the sale of the  Colonial  Funeral  Home
property to the Utopia Station  Development  Corp. for $730,242,  net of selling
costs of $44,758.  The Colonial Funeral Home ceased  operations in July 2006 and
has been  inactive  since  that  date.  The  carrying  amount  on the  Company's
financial  statements  on June 20, 2007 was  $148,777.  As a result of the sale,
including  payment  of  selling  expenses,  the  Company  recognized  a gain  of
$581,465. The Company received an initial payment of $15,242, with the remaining
amount due of  $715,000  to be paid in a lump sum within the year.  The gain has
been included as a part of realized gains on investments and other assets in the
Company's condensed consolidated statement of earnings.

On June 12,  2007,  Security  National  Life  Insurance  Company  entered into a
revolving  line  of  credit  with  a  financial  institution  to  borrow  up  to
$40,000,000. The revolving line of credit is secured by commercial mortgages and
construction  loans. The terms of the revolving line of credit is for a one year
term and  interest is based upon the one year LIBOR rate (6.95% as of  September
30, 2007). Accrued Interest will be paid on a monthly basis, with the principal,
together with any outstanding  accrued interest,  to be paid in full on June 12,
2008.  Security National Life Insurance Company intends to use this financing to
provide  short term  liquidity for its  commercial  mortgage,  construction  and
warehouse lending operations of its affiliate SecurityNational Mortgage Company.
The amount  outstanding  as of September  30, 2007 was  $28,680,453.  The amount
outstanding at November 13, 2007 was $10,000,000.

Recently SecurityNational Mortgage Company renewed its warehouse lines of credit
with its non affiliated  warehouse  lenders.  The total amount  available  under
these lines of credit is $450,000,000.  The terms of the lines of credit are for
one year,  with  interest  rates ranging from 1.5% to 1.75% over the three month
LIBOR (6.73% to 6.98% as of September 30, 2007).

On July 16,  2007,  the  Company  completed  a purchase  transaction  with C & J
Financial, LLC, an Alabama limited liability company ("C & J Financial").  C & J
Financial  operates a factoring  business with offices in Rainbow City,  Alabama
with an emphasis on providing financing for funeral homes and mortuaries.  Under
the terms of the Unit Purchase  Agreement  dated July 16, 2007,  (the  "Purchase
Agreement")  among the Company,  C & J Financial,  Henry Culp, Jr.  ("Culp") and
Culp  Industries,  Inc. ("Culp  Industries"),  the Company  purchased all of the
outstanding member units of C & J Financial for a purchase  consideration of (i)
$1,250,000  in cash,  (ii) a  promissory  note from the  Company  to Culp in the
amount of $381,500  plus  interest at the rate of 5% per annum,  payable  over a
period of 24 months in monthly payments of $16,737,  including  interest,  until
paid in  full,  and  (iii) a quit  claim  deed  from C & J  Financial  to  Culp,
conveying  ownership  of the building and  surrounding  property  located in the
Jester Commercial Park in Rainbow City, Alabama, where C & J Financial currently
maintains its business offices. At closing, Culp Industries entered into a lease
agreement with C & J Financial to lease to C & J Financial  approximately  5,000
square feet in the building located at the Jester  Commercial Park. The lease is
for a term of three years for which C & J Financial,  as tenant,  is required to
make monthly payments of $1,200, for a total lease payment of $43,200.


<PAGE>

6

The Purchase Agreement  additionally  required Culp to deliver to the Company at
closing a promissory  note (the "Note") in the  principal  amount of  $1,755,236
plus interest at the rate of 8.25% per annum from C & J Financial,  as borrower,
to Culp,  as lender,  with such note to be cancelled  and marked "paid in full".
Moreover,  the agreement  provides for the  possibility of  adjustments.  If the
total equity on the balance sheet of C & J Financial as of May 31, 2007, defined
as total  assets  minus  total  liabilities,  is greater  than the amount of the
equity on the balance  sheet of C & J Financial as of the closing  date, or July
16,  2007,  Culp agrees to pay to the Company the  difference  between the total
equity  on the  balance  sheet as of May 31,  2007 and the  total  equity on the
balance  sheet as of July 16,  2007 by  reducing  the amount of the Note by such
difference  in the amounts of the total  equity on such balance  sheets.  If the
amount of the total equity on the balance sheet of C & J Financial as of May 31,
2007 is less than the amount of the total  equity on the balance  sheet of C & J
Financial as of July 16,  2007,  the Company  agrees to pay Culp the  difference
between the total  equity on the balance  sheet as of May 31, 2007 and the total
equity on the balance sheet as of July 16, 2007 by increasing  the amount of the
Note  payable by such  difference  in the  amounts  of the total  equity on such
balance sheets.

The  Purchase  Agreement  further  requires  each  unitholder  to deliver to the
Company  a  non-competition  and  confidentiality   agreement   prohibiting  the
unitholder  from  competing with C & J Financial for a period of five years from
July 16, 2007 through  July 16,  2012.  The Company also entered into a one year
consulting  agreement  with  Culp,  which  requires  Culp to  provide  part-time
consulting  services  for C & J  Financial  at $50.00 per hour,  and a five year
employment  agreement  with Kevin O. Smith  ("Smith"),  Vice  President of C & J
Financial, who will continue to serve in that position. The employment agreement
requires  C & J  Financial  to pay Smith an  annual  salary  of  $96,000  plus a
discretionary bonus and a monthly car allowance of $1,161.

Finally, the Purchase Agreement requires the Company, C & J Financial,  Culp and
Culp  Industries  to  acknowledge  the  existence of a business  loan  agreement
between  Regions  Bank,  as lender,  and Culp  Industries,  as  borrower,  which
provides for a line of credit for C & J Financial.  The  outstanding  balance on
the line of credit as of July 16,  2007 was  $1,971,764.  The line of credit was
secured by, among other assets,  the accounts  receivable of C & J Financial and
was  personally  guaranteed  by Culp.  The  Company  agreed it would pay off the
outstanding  balance of the line of credit with  Regions  Bank.  The Company has
since  paid  off the  outstanding  balance  on the  line of  credit  by means of
applying the payments  from the accounts  receivable  of C & J Financial as such
payments were made in the ordinary course of business.

At June 30, 2007,  total  assets of C & J Financial  were  $3,197,000  and total
liabilities  were  $3,526,000,  which includes the Note to Culp in the amount of
$1,755,000  that was  cancelled  at  closing.  For the seven  month  period from
November  1,  2006 to May 31,  2007,  total  revenues  of C & J  Financial  were
$775,000 and total expenses were  $764,000,  resulting in net income of $11,000.
For the fiscal year ended  October 31, 2006,  total  revenues of C & J Financial
were $1,397,000 and total expenses were  $1,351,000,  resulting in net income of
$46,000.  For the fiscal year ended  October 31, 2005,  total  revenues of C & J
Financial were $1,137,000 and total expenses were  $1,114,000,  resulting in net
income  of  $23,000.  The  Company  anticipates   utilizing  the  employees  and
operations  of C & J  Financial  to expand its fast  funding  operations,  which
provide financing for funeral homes and mortuaries.

<PAGE>

            SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
              Notes to Condensed Consolidated Financial Statements
                         September 30, 2007, (Unaudited)


8.   Subsequent Event

On October 9, 2007, Security National Financial Corporation,  through its wholly
owned subsidiary, Security National Life Insurance Company, entered into a stock
purchase  agreement (the "Stock Purchase  Agreement")  with Capital Reserve Life
Insurance Company, a Missouri domiciled  insurance company ("Capital  Reserve"),
and its  shareholders to purchase all of the outstanding  shares of common stock
of Capital Reserve from its  shareholders.  Under the terms of the  transaction,
Security  National Life Insurance  Company agrees to pay to the  shareholders of
Capital  Reserve  purchase  consideration  equal to the  capital  and surplus of
Capital  Reserve as of September 30, 2007 in the amount of $1,274,000,  plus the
interest  maintenance  reserve in the amount of $31,000 and the asset  valuation
reserve in the amount of $209,000 as of  September  30, 2007,  plus  $1,037,967,
less certain  adjustments.  The adjustments consist of any losses related to two
litigation matters involving Capital Reserve and the difference in the amount of
Capital  Reserve's  capital and surplus at closing compared to the amount of its
capital and surplus on September 30, 2007.

As of  December  31,  2006,  Capital  Reserve  had 10,851  policies in force and
approximately 30 agents.  For the year ended December 31, 2006,  Capital Reserve
had revenues of $5,663,000 and a net loss of $244,000.  As of December 31, 2006,
the  statutory  assets and the  capital  and  surplus of  Capital  Reserve  were
$24,084,000 and $1,960,000, respectively.

Security National Life Insurance Company anticipates  completing the transaction
on or before  November 30, 2007, or within seven days from the date the required
regulatory  approvals are obtained.  The  obligations of Security  National Life
Insurance Company and Capital Reserve to complete the transaction are contingent
upon satisfaction of the following  conditions:  (i) a complete and satisfactory
review by Security  National Life  Insurance  Company of the books,  records and
business of Capital  Reserve;  (ii) approval and adoption of the Stock  Purchase
Agreement by the Board of Directors of Security  National Life Insurance Company
and Capital  Reserve;  and (iii)  approval of the  transaction by any regulatory
authorities  having  jurisdiction  over Security National Life Insurance Company
and  Capital  Reserve,  including  the  insurance  departments  of the states of
Missouri and Utah.

At the closing of the transaction,  Security National Life Insurance Company and
Capital  Reserve  intend to enter into a  reinsurance  agreement to reinsure the
majority  of the in force  business of Capital  Reserve,  as  reinsurer,  to the
extent permitted by the Missouri Department of Insurance. Under the terms of the
reinsurance  agreement,  Security  National Life  Insurance  Company would pay a
ceding  commission to Capital Reserve in the amount of $1,738,000.  In addition,
following  the  payment of the ceding  commission,  Capital  Reserve  intends to
declare a dividend to Security  National Life Insurance Company in the amount of
$1,738,000.  The reinsurance  agreement and the dividend  payment are subject to
approval by the Missouri Department of Insurance.

As a  result  of the  reinsurance  agreement,  certain  insurance  business  and
operations of Capital  Reserve would be  transferred  to Security  National Life
Insurance  Company,  including  all policies in force as of the  effective  date
thereof.  Any  future  business  by  Capital  Reserve  would be  covered by this
reinsurance  agreement.  Thus,  except for capital  and  surplus of  $1,274,000,
$23,569,000 in assets and liabilities  would be transferred from Capital Reserve
to  Security  National  Life  Insurance  Company  pursuant  to  the  reinsurance
agreement.  Following  the  closing of the  transaction,  Capital  Reserve  will
continue to sell and service  life  insurance,  annuity  products,  accident and
health insurance, and funeral plan insurance.


<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) originating and refinancing mortgage loans.

Mortgage Operations

During the nine months ended  September  30, 2007,  Security  National  Mortgage
Company  ("SNMC")  experienced  an increase in revenues  and expenses due to the
increase in loan volume of its mortgage  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 15,843 loans  ($2,932,656,000
total volume) and 9,665 loans ($1,607,842,000 total volume), for the nine months
ended September 30, 2007 and 2006, respectively.

The mortgage industry is currently experiencing substantial change due to higher
than expected  delinquencies  from subprime  loans.  The market for new subprime
loans has been  substantially  reduced  and  several  mortgage  companies  whose
primary product was subprime mortgage  originations have ceased operations.  The
Company funded $5.4 million (0.2% of the Company's production) in subprime loans
during the nine months ending  September  30, 2007 and has currently  eliminated
subprime  loans  from its  product  offerings.  The  Company  believes  that its
potential losses from subprime loans are minimal.

The industry  problem with subprime  mortgages has created a volatile  secondary
market for other products,  especially alternative  documentation (Alt A) loans.
Alt A loans are typically  offered to qualified  borrowers  who have  relatively
high credit scores but are not required to provide full documentation to support
personal income and assets owned.  Alt A loans can have a loan to value ratio as
high as 100%.  There is  currently  a  smaller  market  for Alt A loans  and the
Company's  warehouse  line  providers  have shortened the allowable time for the
Company to sell these products to investors.  As a result of these changes,  the
Company is only offering these loans on a limited basis. Alt A loans represented
approximately 21% of the Company's  production for the six months ended June 30,
2007, but only 5% of the production for the third quarter.

As a consequence of these changes in the industry for Alt A loans, SNMC suffered
a pre-tax loss for the three months ended  September  30, 2007 of  approximately
$2.4 million.  The primary  reason for this loss was due to an operating loss of
$1.4 million  resulting from lower secondary gains and higher interest costs and
an  additional  loan loss  provision of $1.0 million for future  estimated  loan
losses.  The greatest  impact of the operating loss was experienced in July 2007
when there were very little  secondary  gains.  The secondary market improved in
August decreasing the size of the monthly operating loss and September  mortgage
operations showed a slight profit. In

<PAGE>

response  to the  decreased  secondary  gain,  management  increased  loan fees,
lowered  commissions,  closed  unprofitable  branches,  obtained more  favorable
borrowing terms from warehouse  lenders,  and reduced corporate  expenses.  Even
though the market changed for Alt A loans,  SNMC was able to maintain  volume in
the third  quarter by increasing  its  production  of other  mortgage  products,
primarily government and conforming loans

As of November 9, 2007, the Company had originated a total of $29,233,000 in Alt
A loans that had not been settled by investors. This is down from $60,400,000 as
of June 30, 2007.  The market for the  remaining Alt A loans is uncertain and if
the  Company  were unable to sell its Alt A loans it would be required to assume
the risk of holding and  servicing  such  loans.  If  warehousing  lines are not
available,  the Company  believes  it has  adequate  liquidity  through its life
insurance operations to carry such loans until purchased by investors.

Even though  market  conditions  have  improved  somewhat,  the Company  expects
further  significant  industry challenges to continue through the second quarter
of 2008. Under these circumstances it is difficult to predict profitability,  if
any.  Profitability  may be  impacted by volume  reduction,  changes in margins,
increased borrowing costs,and future loan losses.  Management has taken and will
continue  to take a  number  of  actions  in  response  to the  changing  market
conditions.  These  include  offering  Alt A loans on a limited  basis,  closing
unprofitable  branch offices,  obtaining new  warehousing  agreements at a lower
interest rates, and expense reduction initiatives.

During the nine months ending  September 30, 2007, the Company  experienced loan
losses of  $4,170,000.  This amount was charged  against the  provision for loan
losses.  The balance of the reserve  for loan losses at  September  30, 2007 was
$1,497,000.  The  provision  for loan losses is  included  in other  general and
administrative  expenses.  Because  of the market  conditions  the  Company  has
increased its monthly loan loss accrual from 5 basis points of total  production
to 7.5  basis  points  of total  production.  Under  this  formula  the  Company
currently  adds  $225,000  per  month to its loan  loss  reserves.  The  Company
believes the loan loss reserves are sufficient to cover  reasonably  foreseeable
future loan losses and that its formula for  determining  the provision for such
reserves is adequate.

On June 12,  2007,  Security  National  Life  Insurance  Company  entered into a
revolving  line  of  credit  with  a  financial  institution  to  borrow  up  to
$40,000,000. The revolving line of credit is secured by commercial mortgages and
construction  loans. The terms of the revolving line of credit is for a one year
term and  interest is based upon the one year LIBOR rate (6.95% as of  September
30, 2007). Accrued Interest will be paid on a monthly basis, with the principal,
together with any outstanding  accrued interest,  to be paid in full on June 12,
2008.  Security National Life Insurance Company intends to use this financing to
provide  short term  liquidity for its  commercial  mortgage,  construction  and
warehouse lending operations of its affiliate SecurityNational Mortgage Company.
The amount  outstanding  as of September  30, 2007 was  $28,680,453.  The amount
outstanding at November 13, 2007 was $10,000,000.

Recently SecurityNational Mortgage Company renewed its warehouse lines of credit
with its non affiliated  warehouse  lenders.  The total amount  available  under
these lines of credit is $450,000,000.  The terms of the lines of credit are for
one year,  with  interest  rates ranging from 1.5% to 1.75% over the three month
LIBOR (6.73% to 6.98% as of September 30, 2007).

Results of Operations

Three Months Ended  September 30, 2007 Compared to Three Months Ended  September
30, 2006

Total revenues increased by $13,089,000,  or 33.9%, to $51,664,000 for the three
months ended  September 30, 2007,  from  $38,575,000  for the three months ended
September  30,  2006.  Contributing  to this  increase in total  revenues  was a
$10,397,000  increase in mortgage fee income,  an $889,000 increase in insurance
premiums  and other  considerations,  a  $1,895,000  increase in net  investment
income,  a $348,000  increase in net mortuary and cemetery sales, and a $290,000
increase in other revenues,  which was offset by a $730,000 decrease in realized
gains on investments and other assets.

<PAGE>

Insurance premiums and other considerations  increased by $889,000, or 11.8%, to
$8,426,000 for the three months ended  September 30, 2007,  from  $7,537,000 for
the comparable period in 2006. This increase was primarily due to the additional
premiums realized from new insurance sales.

Net investment  income increased by $1,895,000,  or 33.0%, to $7,638,000 for the
three months ended September 30, 2007, from $5,743,000 for the comparable period
in 2006. This increase was primarily  attributable to additional interest income
from increased  long-term bond and mortgage purchases over the comparable period
in 2006.

Net mortuary and cemetery sales  increased by $348,000,  or 12.1%, to $3,213,000
for  the  three  months  ended  September  30,  2007,  from  $2,865,000  for the
comparable  period in 2006. This increase was due to increased  at-need sales in
the cemetery and  mortuary  operations  and  increased  pre-need  sale of burial
spaces in the cemetery operations.

Realized gains on investments and other assets  decreased by $730,000,  or 99.7%
to $2,000 for the three months ended  September  30, 2007 from  $732,000 for the
comparable  period in 2006.  This was primarily due to a gain of $760,000 during
the third quarter of 2006 from the sale of Camelback Funeral Home to the City of
Phoenix pursuant to condemnation  proceedings in order to construct a light rail
facility. .

Mortgage fee income  increased by $10,397,000,  or 48.1%, to $31,999,000 for the
three months ended  September  30, 2007,  from  $21,602,000  for the  comparable
period in 2006.  This increase was primarily  attributable to an increase in the
number of loan  originations  during the third  quarter of 2007 as new  mortgage
offices were opened and production increased in existing mortgage offices, which
resulted in the financing of a greater number of mortgage loans.

Other  revenues  increased by $290,000,  or 302.1%,  to $386,000,  for the three
months ended September 30, 2007 from $96,000 for the comparable  period in 2006.
This increase was due to increases in several small income items  throughout the
Company's  operations  and  to a  $172,000  interest  payment  received  on  the
Camelback condemnation payment as proceeds were not received in a timely manner.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy benefits  increased by an aggregate of $993,000,  or 14.8%, to $7,698,000
for  the  three  months  ended  September  30,  2007,  from  $6,705,000  for the
comparable  period  in  2006.  This  increase  was  primarily  due to  increased
insurance business and to the increase in reserves for policyholder benefits and
death claims.

Amortization  of  deferred  policy and  pre-need  acquisition  costs and cost of
insurance  acquired  increased by $73,000,  or 5.3%, to $1,457,000 for the three
months ended September 30, 2007,  from  $1,384,000 for the comparable  period in
2006. This increase was primarily due to increased  deferred  acquisition  costs
associated with interest sensitive products and pre-need cemetery contracts.


<PAGE>

General and  administrative  expenses  increased by  $13,470,000,  or 50.9%,  to
$39,933,000 for the three months ended September 30, 2007, from  $26,463,000 for
the comparable period in 2006. This increase primarily resulted from an increase
in commission expenses of $8,612,000, from $15,997,000 in 2006 to $24,609,000 in
2007,  due  to  a  greater  number  of  mortgage  loan   originations   made  by
SecurityNational  Mortgage  Company  during the third quarter of 2007.  Salaries
increased by $1,667,000 from $4,470,000 in 2006 to $6,137,000 in 2007, primarily
due to merit increases in salaries of existing  employees and an increase in the
number of employees necessitated by the Company's expanding business operations.
Other expenses  increased by $3,191,000 from $5,996,000 in 2006 to $9,187,000 in
2007.  The increase in other  expenses  primarily  resulted from  increased loan
costs at  SecurityNational  Mortgage  Company  due to a  greater  number of loan
originations.

Interest expense increased by $1,744,000, or 131.0%, to $3,076,000 for the three
months ended September 30, 2007,  from  $1,332,000 for the comparable  period in
2006.  This increase was primarily  due to increased  warehouse  lines of credit
required for a greater number of warehoused  mortgage loans by  SecurityNational
Mortgage Company.

Cost of goods and services sold of the mortuaries  and  cemeteries  increased by
$80,000,  or 14.3%,  to $638,000 for the three months ended  September 30, 2007,
from $558,000 for the comparable period in 2006. This increase was primarily due
to increased at-need cemetery sales.

Nine Months Ended September 30, 2007 Compared to Nine Months Ended September 30,
2006

Total revenues increased by $49,901,000,  or 47.5%, to $155,026,000 for the nine
months ended  September 30, 2007,  from  $105,125,000  for the nine months ended
September  30,  2006.  Contributing  to this  increase in total  revenues  was a
$38,438,000  increase in mortgage fee income, a $1,800,000 increase in insurance
premiums and other  considerations,  an  $8,269,000  increase in net  investment
income, a $1,084,000 increase in net mortuary and cemetery sales, and a $361,000
increase in other revenues,  which was offset by a $51,000 decrease in realized
gains on investments and other assets.

Insurance premiums and other considerations increased by $1,800,000, or 8.0%, to
$24,295,000 for the nine months ended  September 30, 2007, from  $22,495,000 for
the comparable period in 2006. This increase was primarily due to the additional
insurance premiums realized from new insurance sales.

Net investment income increased by $8,269,000,  or 50.7%, to $24,590,000 for the
nine months ended September 30, 2007, from $16,321,000 for the comparable period
in 2006. This increase was primarily  attributable to additional interest income
from increased  long-term bond and mortgage purchases over the comparable period
in 2006.

Net mortuary and cemetery sales increased by $1,084,000 or 11.9%, to $10,158,000
for the nine months ended September 30, 2007, from $9,074,000 for the comparable
period in 2006. This increase was due to increased at-need sales in the cemetery
and  mortuary  operations  and  increased  pre-need  sales of  burial  spaces in
cemetery operations.

Realized gains on investments and other assets decreased by $51,000, or 6.5%, to
$739,000  for the nine months  ended  September  30, 2007 from  $790,000 for the
comparable  period in 2006.  This was primarily due to a net decrease in several
small income items throughout the Company's operations.

Mortgage fee income  increased by $38,438,000,  or 68.4%, to $94,600,000 for the
nine months ended September 30, 2007, from $56,162,000 for the comparable period
in 2006.  This increase was primarily  attributable to an increase in the number
of loan originations during the nine months of 2007 as new mortgage offices were
opened and production increased in existing mortgage offices,  which resulted in
the financing of a greater number of mortgage loans.


<PAGE>

Other revenues increased by $361,000, or 127.6%, to $644,000 for the nine months
ended  September 30, 2007 from $283,000 for the comparable  period in 2006. This
increase  was due to increases in several  small  income  items  throughout  the
Company's  operations  and  to a  $172,000  interest  payment  received  on  the
Camelback condemnation payment as proceeds were not received in a timely manner.

Death  benefits,  surrenders and other policy  benefits,  and increase in future
policy  benefits  increased  by  an  aggregate  of  $2,178,000,   or  10.7%,  to
$22,618,000 for the nine months ended  September 30, 2007, from  $20,440,000 for
the  comparable  period in 2006.  This  increase was  primarily due to increased
insurance  business  and to the expected  increase in reserves for  policyholder
benefits and death claims.

Amortization  of  deferred  policy and  pre-need  acquisition  costs and cost of
insurance acquired increased by $1,232,000, or 41.8%, to $4,180,000 for the nine
months ended September 30, 2007,  from  $2,948,000 for the comparable  period in
2006. This increase was primarily due to increased  deferred  acquisition  costs
associated  with  interest-sensitive  products  from the  recapture  of the Mega
reinsurance  agreement  in the first  quarter  of 2006,  and  pre-need  cemetery
contracts.

General and  administrative  expenses  increased by  $42,460,000,  or 58.8%,  to
$114,662,000  for the nine months ended September 30, 2007, from $72,202,000 for
the comparable period in 2006. This increase primarily resulted from an increase
in commission expenses by $29,859,000 from $42,046,000 in 2006 to $71,905,000 in
2007,  due  to  a  greater  number  of  mortgage  loan   originations   made  by
SecurityNational Mortgage Company during the first nine months of 2007. Salaries
increased  by  $4,864,000  from  $12,960,000  in 2006 to  $17,824,000  in  2007,
primarily  due to merit  increases  in  salaries of  existing  employees  and an
increase in the number of  employees  necessitated  by the  Company's  expanding
business operations.  Other expenses increased by $6,737,000 from $17,197,000 in
2006 to $24,934,000 in 2007. The increase in other expenses  primarily  resulted
from increased loan costs at SecurityNational  Mortgage Company due to a greater
number of loan originations.

Interest expense increased by $6,893,000, or 200.4%, to $10,333,000 for the nine
months ended September 30, 2007,  from  $3,440,000 for the comparable  period in
2006.  This  increase was primarily  from  increased  warehouse  lines of credit
required for a greater number of warehoused  mortgage loans by  SecurityNational
Mortgage Company.

Cost of goods and services sold by the mortuaries  and  cemeteries  increased by
$186,000,  or 10.5%, to $1,952,000`for the nine months ended September 30, 2007,
from  $1,766,000 for the comparable  period in 2006. This increase was primarily
due to increased cemetery and mortuary sales.

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 to meet operating expenses.

During the nine months ended  September 30, 2007, the Company's  operations used
cash of $24,559,000,  while cash totaling $23,210,000 was provided by operations
during the nine months ended  September 30, 2006.  This is due to an increase of
$33,186,000  in the  balance  of  mortgage  loans  sold to  investors,  which is
attributed  to a higher  mortgage  loan volume for the first nine months of 2007
versus  mortgage loan volume during the first nine months of 2006.  The increase
in the balance  resulted from an increase in mortgage  loans  originated but not
yet settled by investors as of September 30, 2007.


<PAGE>

On June 12,  2007,  Security  National  Life  Insurance  Company  entered into a
revolving  line  of  credit  with  a  financial  institution  to  borrow  up  to
$40,000,000. The revolving line of credit is secured by commercial mortgages and
construction  loans. The terms of the revolving line of credit is for a one year
term and  interest is based upon the one year LIBOR rate (6.95% as of  September
30, 2007). Accrued Interest will be paid on a monthly basis, with the principal,
together with any outstanding  accrued interest,  to be paid in full on June 12,
2008.  Security National Life Insurance Company intends to use this financing to
provide  short term  liquidity for its  commercial  mortgage,  construction  and
warehouse lending operations of its affiliate SecurityNational Mortgage Company.
The amount  outstanding  as of September  30, 2007 was  $28,680,453.  The amount
outstanding at November 13, 2007 was $10,000,000.

Recently SecurityNational Mortgage Company renewed its warehouse lines of credit
with its non affiliated  warehouse  lenders.  The total amount  available  under
these lines of credit is $450,000,000.  The terms of the lines of credit are for
one year,  with  interest  rates ranging from 1.5% to 1.75% over the three month
LIBOR (6.73% to 6.98% as of September 30, 2007).


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 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 insurance
subsidiaries  amounted to  $98,607,000  as of September  30,  2007,  compared to
$101,735,000  as of December 31, 2006.  This  represents  45.2% and 46.8% of the
total investments as of September 30, 2007, and December 31, 2006, 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 September  30,  2007,  0.9% (or
$892,000) and at December 31, 2006,  2.3% (or $2,402,000) of the Company's total
bond investments were invested in bonds in rating  categories three through six,
which are considered non-investment grade.

The Company has  classified  certain of its fixed income  securities,  including
high-yield  securities,  in its  portfolio  as  available  for  sale,  with  the
remainder  classified as held to maturity.  However,  in accordance with Company
policy,  any such securities  purchased in the future will be classified as held
to maturity.  Business conditions,  however, may develop in the future which may
indicate a need for a higher level of liquidity in the investment portfolio.  In
that event the  Company  believes  it could  sell  short-term  investment  grade
securities before liquidating higher-yielding longer-term securities.

The Company is subject to risk based capital guidelines established by statutory
regulators  requiring  minimum  capital  levels based on the  perceived  risk of
assets,  liabilities,  disintermediation,  and business  risk.  At September 30,
2007,  and  December  31,  2006,  the life  insurance  subsidiary  exceeded  the
regulatory criteria.

The Company's total  capitalization of stockholders'  equity,  and bank debt and
notes  payable  was  $90,607,000  as of  September  30,  2007,  as  compared  to
$60,641,000 as of December 31, 2006.  Stockholders' equity as a percent of total
capitalization  was 60 % and 87% as of September 30, 2007 and December 31, 2006,
respectively.


<PAGE>

Lapse  rates  measure the amount of  insurance  terminated  during a  particular
period. The Company's lapse rate for life insurance in 2006 was 8.4% as compared
to a rate of 7.9% for 2005.  The 2007 lapse rate to date has been  approximately
the same as 2006.

At September 30, 2007, $19,898,000 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, 2006.

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 Rule 13a-15(e) or 15d-15(e) under the Securities  Exchange Act of
1934 (the "Exchange  Act") as of September 30, 2007.  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

On March 5, 2007, the Company received a proposed consent order from the Florida
Office of Insurance  Regulation  concerning  the New Success Life  Program,  the
higher education product previously being marketed and sold by Southern Security
Life. The proposed order states that as a result of an investigation the Florida
Office has determined  that Southern  Security Life violated  Florida law (i) by
knowingly making statements, sales presentations,  omissions or comparisons that
misrepresented  the  benefits,  advantages,  or  terms of the New  Success  Life
Program,  and  (ii)  by  knowingly  making,  advertisements,  announcements,  or
statements containing representations that were untrue or misleading.

The proposed order would require  Security  National Life and Southern  Security
Life to  immediately  cease and  desist  from  making  any  false or  misleading
representations  to  Florida  consumers  suggesting  that the New  Success  Life
Program would  accumulate  enough value to pay for college expenses in full. The
proposed order would also require Security  National Life and Southern  Security
Life to agree to no longer  market or sell the New Success  Life  Program in the
State of Florida. In addition, Security National Life and Southern Security Life
would be required to send a written  notice to Florida  consumers  who purchased
the New Success Life Program on or after January 1, 1998 stating that the higher
education  program is a whole life  insurance  product,  with a term and annuity
rider, and not a college trust fund, savings plan, or other program,  and it may
not necessarily pay college expenses in full from the accumulated value.


<PAGE>

Moreover,  the  written  notice is to provide  an  opportunity  for the  Florida
consumers who purchased the New Success Life Program on or after January 1, 1998
to cancel their policy and be given a full refund,  including all premiums paid,
together with interest at the agreed upon rate in the original contract. If each
of the Florida  consumers  who  purchased  the New Success  Life  Program  after
January 1, 1998 was to cancel his or her policy and  receive a refund,  the cost
to the  Company  to refund  all  premiums  paid,  including  interest,  would be
approximately $8,200,000, an amount in excess of the assets of Southern Security
Life.

The  proposed  consent  order  would also  require  Security  National  Life and
Southern  Security  Life to  issue  refunds  including  interest  to the  eleven
policyholders  whose affidavits were taken in connection with the administrative
complaint that the Florida  Office had  previously  filed against Franz Wallace,
the former National Sales Director of Southern Security Life.  Security National
Life and Southern Security Life would additionally be required to issue refunds,
including interest,  to any Florida policyholder in the New Success Life Program
who had filed a complaint with the Florida  Department of Financial  Services or
whose  coverage had lapsed.  Furthermore,  Security  National  Life and Southern
Security Life would be required to notify the state insurance department in each
state in which the New  Success  Life  Program is  marketed of the order and any
complaint that Southern  Security Life received relating to the New Success Life
Program from  policyholders in that state.  Finally,  Security National Life and
Southern  Security Life would be required to pay the Florida Office a penalty of
$100,000 and administrative costs of $5,000.

The Company disputes the terms of the proposed consent order. The Company is not
aware of specific concerns that the Florida Office has with the New Success Life
Program  because it has received no specific  administrative  complaint from the
Florida Office nor is it aware of any recent market conduct examination that the
Florida  Office has conducted  relative to the program.  The Company  intends to
vigorously  oppose the proposed consent order. The Company is currently  engaged
in  discussions  with the  Florida  Office in an effort  to settle  the  dispute
concerning the proposed  order. If the Company is unable to reach a satisfactory
resolution  with the Florida  Office with  respect to the terms of the  proposed
consent order and the Florida Office issues a similar order, the Company intends
to take  action  necessary  to  protect  its  rights  and  interests,  including
requesting a hearing before an administrative law judge to oppose the order. The
Company  believes any potential  liability would be limited to the net assets of
Southern Security Life, which are approximately $3,914,000.

Except for the  proposed  consent  order from the  Florida  Office of  Insurance
Regulation, the Company is not a party to any material legal proceedings outside
the  ordinary  course of business or to any other  legal  proceedings,  which if
adversely  determined,  would have a material  adverse  effect on its  financial
condition or results of operation.

Item 1A.       Risk Factors

Due to changes in the mortgage industry from higher than expected  delinquencies
in  subprime  loans,   the  Company  may  be  unable  to  sell  its  alternative
documentation loans to investors,  which would require the Company to assume the
risk of holding and servicing such loans.

The mortgage industry is currently experiencing substantial change due to higher
than expected  delinquencies  from subprime  loans.  The market for new subprime
loans has been  substantially  reduced  and  several  mortgage  companies  whose
primary product was subprime mortgage  originations have ceased operations.  The
Company funded $5.4 million (0.2% of the Company's production) in subprime loans
during the nine months ending  September  30, 2007 and has currently  eliminated
subprime  loans  from its  product  offerings.  The  Company  believes  that its
potential losses from subprime loans are minimal.


<PAGE>

The industry  problem with subprime  mortgages has created a volatile  secondary
market for other high risk products,  especially alternative  documentation (Alt
A) loans.  Alt A loans are  typically  offered to qualified  borrowers  who have
relatively high credit scores but are not required to provide full documentation
to support  personal  income and  assets  owned.  Alt A loans can have a loan to
value ratio as high as 100%. There is currently a smaller market for Alt A loans
and the Company's warehouse line providers have shortened the allowable time for
the Company to sell these  products to investors.  As a result of these changes,
the Company is only offering these loans on a limited basis.

Alt A loans represented  approximately  21% of the Company's  production for the
six months  ended June 30,  2007,  but only 5% of the  production  for the third
quarter. The Company is currently  experiencing an increase in production of its
other mortgage products.  This increased mortgage production will offset some of
the loss of income related to the  discontinuance of Alt A loans. As of November
9, 2007,  the Company had  originated a total of $29,233,000 in Alt A loans that
had not been settled by investors.  This is down from $60,400,000 of Alt A loans
at June 30, 2007.  The market for the remaining Alt A loans is uncertain and, if
the Company were unable to sell its Alt A loans,  it would be required to assume
the risk of holding and  servicing  such  loans.  If  warehousing  lines are not
available  the  Company  believes  it has  adequate  liquidity  through its life
insurance operations to carry such loans until purchased by investors.

Item 2.   Changes in Securities and Use of Proceeds

          None

Item 3.   Defaults Upon Senior Securities

          None

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

          At the  Annual  Meeting of  Stockholders  held on July 13,  2007,  the
          following  matters were acted upon: (i) seven directors  consisting of
          George R. Quist,  Scott M. Quist, J. Lynn Beckstead,  Jr.,  Charles L.
          Crittenden,  Dr. Robert G. Hunter, H. Craig Moody and Norman G. Wilbur
          were  elected to serve until the next annual  stockholders  meeting or
          until their  respective  successors  are elected  and  qualified  (for
          George R. Quist,  with Class A and Class C shares  voting,  11,147,626
          votes  were cast in favor of  election,  no votes  were  cast  against
          election, and there were 212,178 abstentions; for Scott M. Quist, with
          Class A and Class C shares voting, 11,169,030 votes were cast in favor
          of  election,  no votes  were cast  against  election,  and there were
          190,774 abstentions;  for J. Lynn Beckstead,  Jr., with Class A shares
          voting,  4,871,686 votes were cast in favor of election, no votes were
          cast against election, and there were 103,378 abstentions; for Charles
          L. Crittenden,  with Class A and Class C shares, 11,169,237 votes were
          cast in favor of election,  no votes were cast against  election,  and
          there were 190,567 abstentions; for Dr. Robert G. Hunter, with Class A
          and  Class C shares  voting,  11,169,627  votes  were cast in favor of
          election,  no votes cast  against  election,  and there  were  190,177
          abstentions; for H. Craig Moody, with Class A shares voting, 4,878,898
          votes were cast in favor of election,  no votes cast against election,
          and there were  96,166  abstentions;  and for Norman G.  Wilbur,  with
          Class A and Class C shares voting, 11,160,357 votes were cast in favor
          of  election,  no votes  were cast  against  election,  and there were
          199,447 abstentions); (ii) the appointment of Hansen,


<PAGE>


          Barnett & Maxwell,  P.C. as the Company's registered pubic independent
          accountants  for the fiscal year ending December 31, 2007 was ratified
          (with  11,298,892  votes cast for  appointment,  60,365 votes  against
          appointment,  and  there  were -0-  abstentions),  (iii) to amend  the
          Company's  2003 Stock Option Plan to authorize an  additional  400,000
          shares of Class A common stock and an additional  1,000,000  shares of
          Class C common stock to be made available for issuance  thereunder was
          ratified (with 9,176,164 for and 379,699 against); and (iv) to approve
          the  adoption of the 2006  Director  Stock Option Plan for the outside
          directors  and to reserve  100,000  shares of Class A common stock for
          issuance  was  ratified  thereunder  (with  9,182,808  shares  for and
          373,205 against.)

          At a Special Meeting of  Stockholders  held on September 21, 2007, the
          proposed  amendment  to the  Company's  Articles of  Incorporation  to
          increase the authorized  capital stock of the Company from  27,500,000
          shares to  45,000,000  shares,  to increase  the number of  authorized
          shares of Class A common stock from  10,000,000  shares to  20,000,000
          shares  and to  increase  the number of  authorized  shares of Class C
          common stock from 7,500,000  shares to 15,000,000  shares was approved
          (with 11,728,124 voting for and 168,142 against.)


Item 5.  Other Information

Acquisition of C & J Financial, LLC

On July 16,  2007,  the  Company  completed  a purchase  transaction  with C & J
Financial, LLC, an Alabama limited liability company ("C & J Financial").  C & J
Financial  operates a factoring  business with offices in Rainbow City,  Alabama
with an emphasis on providing financing for funeral homes and mortuaries.  Under
the terms of the Unit  Purchase  Agreement  dated July 16,  2007 (the  "Purchase
Agreement")  among the Company,  C & J Financial,  Henry Culp, Jr.  ("Culp") and
Culp  Industries,  Inc. ("Culp  Industries"),  the Company  purchased all of the
outstanding member units of C & J Financial for a purchase  consideration of (i)
$1,250,000  in cash,  (ii) a  promissory  note from the  Company  to Culp in the
amount of $381,500  plus  interest at the rate of 5% per annum,  payable  over a
period of 24 months in monthly payments of $16,737,  including  interest,  until
paid in  full,  and  (iii) a quit  claim  deed  from C & J  Financial  to  Culp,
conveying  ownership  of the building and  surrounding  property  located in the
Jester Commercial Park in Rainbow City, Alabama, where C & J Financial currently
maintains its business offices. At closing, Culp Industries entered into a lease
agreement with C & J Financial to lease to C & J Financial  approximately  5,000
square feet in the building located at the Jester  Commercial Park. The lease is
for a term of three years for which C & J Financial,  as tenant,  is required to
make monthly payments of $1,200, for a total lease payment of $43,200.

The Purchase Agreement  additionally  required Culp to deliver to the Company at
closing a promissory  note (the "Note") in the  principal  amount of  $1,755,236
plus interest at the rate of 8.25% per annum from C & J Financial,  as borrower,
to Culp,  as lender,  with such note to be cancelled  and marked "paid in full".
Moreover,  the agreement  provides for the  possibility of  adjustments.  If the
total equity on the balance sheet of C & J Financial as of May 31, 2007, defined
as total  assets  minus  total  liabilities,  is greater  than the amount of the
equity on the balance  sheet of C & J Financial as of the closing  date, or July
16,  2007,  Culp agrees to pay to the Company the  difference  between the total
equity  on the  balance  sheet as of May 31,  2007 and the  total  equity on the
balance  sheet as of July 16,  2007 by  reducing  the amount of the Note by such
difference  in the amounts of the total  equity on such balance  sheets.  If the
amount of the total equity on the balance sheet of C & J Financial as of May 31,
2007 is less than the amount of the total  equity on the balance  sheet of C & J
Financial as of July 16,  2007,  the Company  agrees to pay Culp the  difference
between the total  equity on the balance  sheet as of May 31, 2007 and the total
equity on the balance sheet as of July 16, 2007 by increasing  the amount of the
Note  payable by such  difference  in the  amounts  of the total  equity on such
balance sheets.


<PAGE>

The  Purchase  Agreement  further  requires  each  unitholder  to deliver to the
Company  a  non-competition  and  confidentiality   agreement   prohibiting  the
unitholder  from  competing with C & J Financial for a period of five years from
July 16, 2007 through  July 16,  2012.  The Company also entered into a one year
consulting  agreement  with  Culp,  which  requires  Culp to  provide  part-time
consulting  services  for C & J  Financial  at $50.00 per hour,  and a five year
employment  agreement  with Kevin O. Smith  ("Smith"),  Vice  President of C & J
Financial, who will continue to serve in that position. The employment agreement
requires  C & J  Financial  to pay Smith an  annual  salary  of  $96,000  plus a
discretionary bonus and a monthly car allowance of $1,161.

Finally, the Purchase Agreement requires the Company, C & J Financial,  Culp and
Culp  Industries  to  acknowledge  the  existence of a business  loan  agreement
between  Regions  Bank,  as lender,  and Culp  Industries,  as  borrower,  which
provides for a line of credit for C & J Financial.  The  outstanding  balance on
the line of credit as of July 16,  2007 was  $1,971,764.  The line of credit was
secured by, among other assets,  the accounts  receivable of C & J Financial and
was  personally  guaranteed  by Culp.  The  Company  agreed it would pay off the
outstanding  balance of the line of credit with  Regions  Bank.  The Company has
since  paid  off the  outstanding  balance  on the  line of  credit  by means of
applying the payments  from the accounts  receivable  of C & J Financial as such
payments were made in the ordinary course of business.

At June 30, 2007,  total  assets of C & J Financial  were  $3,197,000  and total
liabilities  were  $3,526,000,  which includes the Note to Culp in the amount of
$1,755,000  that was  cancelled  at  closing.  For the seven  month  period from
November  1,  2006 to May 31,  2007,  total  revenues  of C & J  Financial  were
$775,000 and total expenses were  $764,000,  resulting in net income of $11,000.
For the fiscal year ended  October 31, 2006,  total  revenues of C & J Financial
were $1,397,000 and total expenses were  $1,351,000,  resulting in net income of
$46,000.  For the fiscal year ended  October 31, 2005,  total  revenues of C & J
Financial were $1,137,000 and total expenses were  $1,114,000,  resulting in net
income  of  $23,000.  The  Company  anticipates   utilizing  the  employees  and
operations  of C & J  Financial  to expand its fast  funding  operations,  which
provide financing for funeral homes and mortuaries.

Proposed Acquisition of Capital Reserve Life Insurance Company

On October 9, 2007, Security National Financial Corporation,  through its wholly
owned subsidiary, Security National Life Insurance Company, entered into a stock
purchase  agreement (the "Stock Purchase  Agreement")  with Capital Reserve Life
Insurance Company, a Missouri domiciled  insurance company ("Capital  Reserve"),
and its  shareholders to purchase all of the outstanding  shares of common stock
of Capital Reserve from its  shareholders.  Under the terms of the  transaction,
Security  National Life Insurance  Company agrees to pay to the  shareholders of
Capital  Reserve  purchase  consideration  equal to the  capital  and surplus of
Capital  Reserve as of September 30, 2007 in the amount of $1,274,000,  plus the
interest  maintenance  reserve in the amount of $31,000 and the asset  valuation
reserve in the amount of $209,000 as of  September  30, 2007,  plus  $1,037,967,
less certain  adjustments.  The adjustments consist of any losses related to two
litigation matters involving Capital Reserve and the difference in the amount of
Capital  Reserve's  capital and surplus at closing compared to the amount of its
capital and surplus on September 30, 2007.

As of  December  31,  2006,  Capital  Reserve  had 10,851  policies in force and
approximately 30 agents.  For the year ended December 31, 2006,  Capital Reserve
had revenues of $5,663,000 and a net loss of $244,000.  As of December 31, 2006,
the  statutory  assets and the  capital  and  surplus of  Capital  Reserve  were
$24,084,000 and $1,960,000, respectively.


<PAGE>

Security National Life Insurance Company anticipates  completing the transaction
on or before  November 30, 2007, or within seven days from the date the required
regulatory  approvals are obtained.  The  obligations of Security  National Life
Insurance Company and Capital Reserve to complete the transaction are contingent
upon satisfaction of the following  conditions:  (i) a complete and satisfactory
review by Security  National Life  Insurance  Company of the books,  records and
business of Capital  Reserve;  (ii) approval and adoption of the Stock  Purchase
Agreement by the Board of Directors of Security  National Life Insurance Company
and Capital  Reserve;  and (iii)  approval of the  transaction by any regulatory
authorities  having  jurisdiction  over Security National Life Insurance Company
and  Capital  Reserve,  including  the  insurance  departments  of the states of
Missouri and Utah.

At the closing of the transaction,  Security National Life Insurance Company and
Capital  Reserve  intend to enter into a  reinsurance  agreement to reinsure the
majority  of the in force  business of Capital  Reserve,  as  reinsurer,  to the
extent permitted by the Missouri Department of Insurance. Under the terms of the
reinsurance  agreement,  Security  National Life  Insurance  Company would pay a
ceding  commission to Capital Reserve in the amount of $1,738,000.  In addition,
following  the  payment of the ceding  commission,  Capital  Reserve  intends to
declare a dividend to Security  National Life Insurance Company in the amount of
$1,738,000.  The reinsurance  agreement and the dividend  payment are subject to
approval by the Missouri Department of Insurance.

As a  result  of the  reinsurance  agreement,  certain  insurance  business  and
operations of Capital  Reserve would be  transferred  to Security  National Life
Insurance  Company,  including  all policies in force as of the  effective  date
thereof.  Any  future  business  by  Capital  Reserve  would be  covered by this
reinsurance  agreement.  Thus,  except for capital  and  surplus of  $1,274,000,
$23,569,000 in assets and liabilities  would be transferred from Capital Reserve
to  Security  National  Life  Insurance  Company  pursuant  to  the  reinsurance
agreement.  Following  the  closing of the  transaction,  Capital  Reserve  will
continue to sell and service  life  insurance,  annuity  products,  accident and
health insurance, and funeral plan insurance.

Exercise of Stock Options and Special Stockholders Meeting

The  Company's  Board of  Directors  granted  stock  options in 2004 to Scott M.
Quist, the Company's  President and Chief Operating  Officer,  to purchase up to
1,000,000  shares of Class C common  stock at exercise  prices of $.323 and $.36
per share.  On May 31, 2007, Mr. Quist made a cashless  exercise of such options
to  purchase  a total of  1,157,625  shares of Class C common  stock that he was
entitled to receive, after adjustments for 5% stock dividends the Company issued
in 2005, 2006 and 2007.

In connection with the exercise of such options on a cashless  basis,  Mr. Quist
delivered a total of 58,376  shares of Class A common  stock to the Company that
he held in  exchange  for all the Class C shares he would be entitled to receive
for exercising the options.  Inasmuch as there were 6,966,849  shares of Class C
common  stock  outstanding  as of May  31,  2007  out of a  total  of  7,500,000
authorized  shares of Class C common stock, the Company could legally issue only
533,151  shares of Class C common  stock to Mr.  Quist,  leaving  a  balance  of
624,474 Class C common shares owing to him.

In order to issue the  additional  shares of Class C common  shares owing to Mr.
Quist,  the Board of  Directors  approved on July 13, 2007 an  amendment  to the
Company's Articles of Incorporation to increase the authorized number of Class C
common shares from 7,500,000 shares to 15,000,000  shares.  Because  stockholder
approval was also required to amend the Articles of  Incorporation,  the Company
scheduled a Special  Stockholders  Meeting on September  21, 2007 to approve the
amendment to the Articles of Incorporation to increase the authorized  number of
shares of Class C common stock to 15,000,000 shares.  The stockholders  approved
the  amendment  to the  Articles of  Incorporation  at the Special  Stockholders
Meeting,  that  increased  the  authorized  number  of Class C common  shares to
15,000,000 shares, and, as a result, the Company was able to issue Mr. Quist the
additional 624,474 shares of Class C common stock that were owed pursuant to his
exercise of stock options.


<PAGE>

Item 6. Exhibits, Financial Statement Schedules and Reports on Form 8-K

(a)(1) Financial Statements

         See "Table of Contents - Part I - Financial Information" under page 2
above

(a)(2) Financial Statement Schedules

       None

         All other schedules to the consolidated financial statements required
         by Article 7 of Regulation S-X are not required under the related
         instructions or are inapplicable and therefore have been omitted.

    (3)  Exhibits

         The following Exhibits are filed herewith pursuant to Rule 601 of
         Regulation S-K or are incorporated by reference to previous filings.

      3.1  Articles of Restatement of Articles of Incorporation (4)
      3.2  Amended Bylaws (6)
      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   2003 Stock Option Plan (5)
    10.3   2006 Director Stock Option Plan (13)
    10.4   Deferred Compensation Agreement with George R. Quist (2)
    10.5   Deferred Compensation Plan (3)
    10.6   Employment agreement with J. Lynn Beckstead, Jr. (7)
    10.7   Employment agreement with Scott M. Quist (8)
    10.8   Stock Purchase  Agreement  among Security  National Life Insurance
           Company,  Southern  Security Life Insurance  Company, Memorial
           Insurance Company of America, and the shareholders of Memorial
           Insurance Company (9)
    10.9   Reinsurance Agreement between Security National Life Insurance
           Company and Memorial Insurance Company of America (10)
   10.10   Trust Agreement between Security National Life Insurance Company and
           Memorial Insurance Company of America (10)
   10.11   Promissory Note between Memorial Insurance Company as Maker and
           Security National Life Insurance Company as Payee (10)
   10.12   Security Agreement between Memorial Insurance Company as Debtor and
           Security National Life Insurance Company as Secured Party (10)
   10.13   Surplus  Contribution  Note between Memorial  Insurance  Company of
           America as Maker and Southern Security Life Insurance Company as
           Payee (10)
   10.14   Guaranty  Agreement by Security National Life Insurance Company and
           Southern Security Life Insurance Company as Guarantors (10)
   10.15   Administrative Services Agreement between Security National Life
           Insurance Company and Memorial Insurance Company of America (10)
   10.16   Reinsurance Agreement between Security National Life Insurance
           Company and Southern Security Life Insurance Company (11)
   10.17   Trust Agreement among Security National Life Insurance Company,
           Southern Security Life Insurance Company and Zions First National
           Bank (11)


<PAGE>



    10.18  Stock Purchase  Agreement among Security National Life Insurance
           Company,  Southern Security Life Insurance Company and American
           Network Insurance Company (12)
    10.19  Escrow Agreement among Security National Life Insurance Company,
           Southern Security Life Insurance Company, American Network Insurance
           Company and Mackey Price Thompson & Ostler (12)
    10.20  Escrow Agreement among American Network Insurance Company,
           Security National Life Insurance Company, Southern Security Life
           Insurance Company, and Preferred Insurance Capital Consultants,
           LLC (12)
    10.21  Agreement and Plan of Complete Liquidation of Southern Security Life
           Insurance Company into Security National Life Insurance Company (12)
    10.22  Assignment between Southern Security Life Insurance Company and
           Security National Life Insurance Company (12)
    10.23  Assignment between Southern Security Life Insurance Company and
           Security National Life Insurance Company (12)
    10.24  Unit Purchase  Agreement among Security National Financial
           Corporation, C&J Financial, LLC, Henry Culp, Jr., and Culp
           Industries, Inc. (14)
    10.25  Stock Purchase Agreement among Security National Life Insurance
           Company, Capital Reserve Life Insurance Company, and the
           shareholders of Capital Reserve Life Insurance Company (15)
     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 April 3, 2002
      (4)  Incorporated by reference from Report on Form 8-K/A as filed on
           January 8, 2003
      (5)  Incorporated by reference from Schedule 14A Definitive Proxy
           Statement, as filed on June 5, 2003, relating to the Company's
           Annual Meeting of Stockholders
      (6)  Incorporated by reference from Report on Form 10-Q, as filed on
           November 14, 2003
      (7)  Incorporated by reference from Report on Form 10-K, as filed on
           March 30, 2004
      (8)  Incorporated by reference from Report on Form 10-Q, as filed on
           August 13, 2004 (9) Incorporated by reference from Report on
           Form 8-K, as filed on September 27, 2005
     (10)  Incorporated by reference from Report on Form 8-K, as filed on
           January 5, 2006
     (11)  Incorporated by reference from Report on Form 8-K, as filed on
           January 11, 2006
     (12)  Incorporated by reference from Report on Form 8-K, as filed on
           January 12, 2007
     (13)  Incorporated by reference from Schedule 14A Definitive Proxy
           Statement, as filed on June 1, 2007, relating to the Company's
           Annual Meeting of Shareholders
     (14)  Incorporated by reference from Report on Form 8-K, as filed on
           August 8, 2007
     (15)  Incorporated by reference from Report on Form 8-K, as filed on
           November 5, 2007

    (b) Reports on Form 8-K:

           Current report on Form 8-K, as filed on August 8, 2007
           Current report on Form 8-K, as filed on November 5, 2007


<PAGE>



                                   SIGNATURES

Pursuant  to the  requirements  of the  Securities  Exchange  Act of  1934,  the
Registrant  has duly  caused  this  report  to be  signed  on its  behalf by the
undersigned thereunto duly authorized.


                                   REGISTRANT

                     SECURITY NATIONAL FINANCIAL CORPORATION
                                   Registrant


      Dated: November 14, 2007              By:  s/s George R. Quist
                                                 -------------------
                                                 George R. Quist
                                                 Chairman of the Board and
                                                 Chief Executive Officer
                                                 (Principal Executive Officer)


      Dated: November 14, 2007              By:  s/s Stephen M. Sill
                                                 ---------------------
                                                 Stephen M. Sill
                                                 Vice President, Treasurer and
                                                 Chief Financial Officer
                                                 (Principal Financial and
                                                 Accounting Officer)




<PAGE>


                                  Exhibit 31.1

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


I, George R. Quist, certify that:

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

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

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

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

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

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

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

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

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

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



  Dated: November 14, 2007             By:    George R. Quist
                                              Chairman of the Board and Chief
                                              Executive Officer



<PAGE>


                                  Exhibit 31.2

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


I, Stephen M. Sill, certify that:

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

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

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

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

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

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

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

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

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

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


 Dated: November 14, 2007             By:  Stephen M. Sill
                                           Vice President, Treasurer and Chief
                                           Financial Officer


<PAGE>



                                  EXHIBIT 32.1
                            CERTIFICATION PURSUANT TO
                               18 U.S.C. ss. 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In  connection  with  the  Quarterly  Report  of  Security  National   Financial
Corporation  (the  "Company") on Form 10-Q for the period  ending  September 30,
2007, as filed with the  Securities  and Exchange  Commission on the date hereof
(the  "Report"),  I, George R. Quist,  Chairman of the Board and Chief Executive
Officer of the Company,  certify,  pursuant to 18 U.S.C.  ss.  1350,  as adopted
pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002, that, to the best of
my knowledge and belief:

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

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


  Dated: November 14, 2007           By:   George R. Quist
                                           Chairman of the Board and Chief
                                           Executive Officer



                                  EXHIBIT 32.2
                            CERTIFICATION PURSUANT TO
                               18 U.S.C. ss. 1350,
                             AS ADOPTED PURSUANT TO
                  SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In  connection  with  the  Quarterly  Report  of  Security  National   Financial
Corporation  (the  "Company") on Form 10-Q for the period  ending  September 30,
2007, as filed with the  Securities  and Exchange  Commission on the date hereof
(the  "Report"),  I,  Stephen  M.  Sill,  Vice  President,  Treasurer  and Chief
Financial  Officer of the Company,  certify,  pursuant to 18 U.S.C. ss. 1350, as
adopted pursuant to Section 906 of the  Sarbanes-Oxley Act of 2002, that, to the
best of my knowledge and belief:

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

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

 Dated: November 14, 2007           By:   Stephen M. Sill
                                          Vice President, Treasurer and Chief
                                          Financial Officer