<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM 10Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended June 30, 1997 Commission File Number: 0-9341
SECURITY NATIONAL FINANCIAL CORPORATION
Exact Name of Registrant.
UTAH 87-0345941
- --------------------------------- -----------------
(State or other jurisdiction IRS Identification Number
of incorporation or organization)
5300 South 360 West, Salt Lake City, Utah 84123
- ------------------------------------------ ----------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number,
including Area Code (801) 264-1060
--------------
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Sections 13 or 15(d) of
the Securities Exchange Act of 1934 during the preceding 12
months (or for 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 XX NO
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, net of treasury stock, as of
the close of the period covered by this report.
Class A Common Stock, $2.00 par value 3,468,258
- -------------------------------------- -----------------
Title of Class Number of Shares
Outstanding as of
June 30, 1997
Class C Common Stock, $.20 par value 4,912,485
- -------------------------------------- ------------------
Title of Class Number of Shares
Outstanding as of
June 30, 1997
<PAGE>
SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
FORM 10Q
QUARTER ENDED JUNE 30, 1997
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION
Page No.
--------
<TABLE>
<CAPTION>
Item 1. Financial Statements
<S> <C>
Consolidated Statements of Earnings - Six
months ended June 30, 1997 and 1996, and
three months ended June 30, 1997 and 1996. . . . . . 3
Consolidated Balance Sheets - June 30,
1997 and December 31, 1996 . . . . . . . . . . . . 4-5
Consolidated Statements of Cash Flows -
Six months ended June 30, 1997 and
June 30, 1996. . . . . . . . . . . . . . . . . . . 6-7
Notes to Consolidated Financial
Statements . . . . . . . . . . . . . . . . . . . . . 8
Item 2 Management's Discussion and Analysis. . . . . . .8-12
PART II - OTHER INFORMATION
Other Information. . . . . . . . . . . . . . . . . .13
Signature Page . . . . . . . . . . . . . . . . . . .14
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
Six Months Ended June 30, Three Months Ended June 30,
1997 1996 1997 1996
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
REVENUE:
Insurance premiums
and other
considerations $ 2,983,294 $ 2,972,085 $1,510,671 $1,445,455
Net investment
income 3,466,068 3,865,189 1,692,641 1,942,126
Net mortuary and
cemetery sales 4,772,676 4,294,942 2,272,313 2,153,830
Realized gains on
investments and
other assets 269,575 (26,024) 233,548 (31,922)
Mortgage fee income 2,887,947 4,481,704 1,261,828 1,962,344
Other 22,210 42,957 11,278 11,429
----------- ----------- ---------- ----------
Total Revenue $14,401,770 $15,630,853 $6,982,279 $7,483,262
BENEFITS AND EXPENSES:
Death benefits 1,211,108 1,022,159 682,684 524,800
Surrenders and other
policy benefits 774,609 808,220 508,155 492,756
Increase in future
policy benefits 1,298,064 1,446,469 555,612 501,508
Amortization of
deferred policy
acquisition costs
and cost of insurance
acquired 639,355 645,122 324,527 310,855
General and
administrative
expenses:
Commissions 2,397,780 3,005,000 1,127,487 1,420,000
Salaries 2,435,367 2,402,790 1,169,323 1,319,971
Other 2,949,368 3,673,707 1,437,731 1,683,929
Interest expense 537,851 763,632 260,329 359,148
Cost of goods and
services sold
of the mortuaries
and cemeteries 1,451,098 1,200,305 719,236 611,569
---------- ----------- ---------- ----------
Total benefits
and expenses 13,694,600 14,967,404 6,785,084 7,224,536
----------- ----------- ---------- ----------
Earnings before
income taxes 707,170 663,449 197,195 258,726
Income tax expense (165,112) (186,045) (47,818) (72,552)
----------- ----------- ----------- ----------
Net earnings $ 542,058 $ 477,404 $ 149,377 $ 186,174
=========== =========== =========== ==========
Earnings per
share $0.13 $0.13 $0.04 $0.05
===== ===== ===== =====
Weighted average
outstanding
common shares 4,024,952 3,816,832 4,019,197 3,816,832
============ =========== ========== ==========
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
June 30, 1997 December 31,
(Unaudited) 1996
-------------- ------------
<S> <C> <C>
Assets:
Investments:
Fixed maturity securities
held to maturity, at amortized
cost $47,041,539 $47,934,684
Equity securities available for sale,
at market 3,960,205 4,133,105
Mortgage loans on real estate 8,063,808 9,809,379
Real estate, net of accumulated
depreciation 7,708,748 7,808,255
Policy loans 2,841,928 3,021,155
Other loans 146,273 218,437
Short-term investments 4,802,407 2,258,283
----------- -----------
Total insurance related
investments 74,564,908 75,183,298
Restricted assets of cemeteries
and mortuaries 3,696,552 3,454,622
Cash 8,618,578 3,301,084
Receivables:
Trade contracts 4,352,740 4,514,010
Mortgage loans sold to investors 7,006,540 13,455,123
Receivable from agents 762,686 670,439
Other 330,358 292,680
----------- -----------
Total receivables 12,452,324 18,932,252
Allowance for doubtful accounts (1,703,023) (1,862,599)
----------- -----------
Net receivables 10,749,301 17,069,653
Land and improvements held for sale 8,489,074 8,456,302
Accrued investment income 1,042,710 1,040,242
Deferred policy acquisition costs 4,267,827 4,277,560
Property, plant and equipment, net 6,425,185 6,513,980
Cost of insurance acquired 3,619,079 3,748,654
Excess of cost over net assets
of acquired subsidiaries 1,352,188 1,370,708
Other 463,419 293,400
----------- ------------
Total Assets $123,288,821 $124,709,503
============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS (Continued)
June 30, 1997 December 31,
(Unaudited) 1996
------------- ------------
<S> <C> <C>
Liabilities:
Future life, annuity, and other
policy benefits $77,178,617 $76,962,062
Line of credit for financing
of mortgage loans -- 1,211,890
Bank loans payable 6,285,357 6,768,119
Notes and contracts payable 3,629,934 4,509,921
Estimated future costs of
pre-need sales 5,963,095 5,874,387
Payable to endowment care fund 137,396 70,617
Accounts payable 1,265,604 1,199,920
Other liabilities and accrued
expenses 2,034,937 1,902,046
Income taxes 2,906,073 2,742,513
----------- ------------
Total Liabilities 99,401,013 101,241,475
Stockholders' Equity:
Common stock:
Class A: $2 par value, authorized
10,000,000 shares, issued 4,108,922
shares in 1997 and 4,110,709 shares
in 1996 8,217,844 8,221,418
Class C: $0.20 par value, authorized
7,500,000 shares, issued 4,966,025
shares in 1997 and 4,967,072 shares
in 1996 993,203 993,413
---------- ----------
Total common stock 9,211,047 9,214,831
Additional paid-in capital 8,675,386 8,675,386
Unrealized appreciation of
investments 176,585 259,915
Retained earnings 7,664,370 7,118,528
Treasury stock at cost (640,664 Class
A shares and 53,540 Class C shares
in 1997; 631,576 Class A shares and
53,540 Class C shares in 1996, held
by affiliated companies) (1,839,580) (1,800,632)
------------ ------------
Total Stockholders' Equity 23,887,808 23,468,028
------------ ------------
Total Liabilities and
Stockholders' Equity $123,288,821 $124,709,503
============ ============
</TABLE>
See accompanying notes to consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended June 30,
1997 1996
(Unaudited) (Unaudited)
---------- ----------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $542,058 $477,404
Adjustments to reconcile net earnings
to net cash provided by operating
activities:
Realized gains on investments and
other assets (269,575) 20,226
Depreciation 380,216 717,017
Provision for losses on accounts
and loans receivable (159,575) (211,340)
Amortization of goodwill, premiums,
and discounts (1,953) 3,364
Income taxes 163,560 185,874
Policy acquisition costs deferred (500,047) (399,394)
Policy acquisition costs amortized 509,780 521,691
Cost of insurance acquired amortized 129,575 123,413
Change in assets and liabilities net of
effects from purchases and disposals
of subsidiaries:
Land and improvements held for sale (32,772) (473,816)
Future life and other benefits 943,023 1,435,139
Receivables for mortgage loans sold 6,448,583 10,936,467
Other operating assets and liabilities 212,919 100,347
----------- -----------
Net cash provided by operating
activities 8,365,792 13,436,392
Cash flows from investing activities:
Securities held to maturity:
Purchase of fixed maturity
securities (3,157,492) (300,752)
Calls and maturities - fixed
maturity securities 4,098,016 3,426,352
Securities available for sale:
Purchases - equity securities (166,695) (5,980)
Proceeds from sale of equity
securities 498,934 101,570
Purchases of short-term investments (3,192,862) (5,176,198)
Sales of short-term investments 648,738 2,037,928
Purchases of restricted assets (241,930) (157,462)
Mortgage, policy, and other loans made (362,837) (2,161,220)
Payments received for mortgage, policy,
and other loans 2,359,799 657,634
Purchases of property, plant, and
equipment (146,046) (547,921)
Purchases of real estate (45,868) (87,949)
---------- ------------
Net cash provided by (used in)
investing activities 291,757 (2,213,998)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
SECURITY NATIONAL FINANCIAL CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
Six Months Ended June 30,
1997 1996
(Unaudited) (Unaudited)
----------- ----------
<S> <C> <C>
Cash flows from financing activities:
Annuity receipts 1,322,402 1,551,084
Annuity withdrawals (2,048,870) (2,461,412)
Repayment of bank loans and
notes and contracts payable (1,362,749) (686,177)
Proceeds from borrowings on bank
loans and notes and contracts
payable -0- 42,489
Purchase of Treasury Stock (38,948) -0-
Net decrease in line of credit for
financing of mortgage loans (1,211,890) (11,300,360)
------------ -------------
Net cash used in financing
activities (3,340,055) (12,854,376)
------------ -------------
Net change in cash 5,317,494 (1,631,982)
Cash at beginning of period 3,301,084 7,710,155
------------ -------------
Cash at end of period $ 8,618,578 $ 6,078,173
============ =============
</TABLE>
<PAGE>
SECURITY NATIONAL FINANCIAL CORPORATION AND SUBSIDIARIES
Notes to Consolidated Financial Statements
June 30, 1997 and 1996
(Unaudited)
1. Basis of Presentation
---------------------
The accompanying unaudited consolidated financial statements
have been prepared in accordance with generally accepted
accounting principles for interim financial information and
with the instructions to Form 10-Q and Article 10 of
Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted
accounting principles for complete financial statements. In
the opinion of management, all adjustments (consisting of
normal recurring accruals) considered necessary for a fair
presentation have been included. Operating results for the
six months ended June 30, 1997, are not necessarily indicative
of the results that may be expected for the year ending
December 31, 1997. For further information, refer to the
consolidated financial statements and footnotes thereto for
the year ended December 31, 1996, included in the Company's
Annual Report on Form 10-K (file number 0-9341).
Reclassification to certain 1996 balances have been made to
conform with the 1997 presentation.
MANAGEMENT'S DISCUSSION AND ANALYSIS
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,
annuities, and limited pay accident policies; (ii) emphasis on
high margin cemetery and mortuary business; and (iii)
capitalizing on the strong economy in the intermountain west
by originating and refinancing mortgage loans.
Three Months Ended June 30, 1997 as Compared to Three Months
Ended June 30, 1996
Total revenues decreased by $501,000, or 6.7%, to $6,982,000
for the three months ended June 30, 1997, from $7,483,000 for
the three months ended June 30, 1996. Contributing to this
reduction in total revenues was a $249,000 decrease in net
investment income and a $700,000 decrease in mortgage fee
income. These decreases were partially offset by a $118,000
increase in net mortuary and cemetery sales, a $66,000
increase in insurance premiums and other considerations and a
$266,000 increase in realized gains on investments.
Insurance premiums and other considerations increased by
$66,000, or 4.6%, to $1,511,000 for the three months ended
June 30, 1997, from $1,445,000 for the comparable period in
1996. This increase was primarily due to an increase in
policies in force.
Net investment income decreased by $249,000, or 12.8%, to
$1,693,000 for the three months ended June 30, 1997, from
$1,942,000 for the comparable period in 1996. This reduction
was attributable to the Company maintaining larger cash and
short term investment balances and warehousing fewer mortgage
loans during the second quarter of 1997.
<PAGE>
Net mortuary and cemetery sales increased by $118,000, or
5.5%, to $2,272,000 for the three months ended June 30, 1997,
from $2,154,000 for the comparable period in 1996. This
increase was primarily related to additional preneed sales
from the opening of Singing Hills Memorial Park Cemetery in
San Diego, California during the third quarter of 1996.
Preneed sales of cemetery and mortuary products also increased
at the Company's other cemeteries and mortuaries.
Mortgage fee income decreased by $700,000, or 35.7%, to
$1,262,000 for the three months ended June 30, 1997, from
$1,962,000 for the comparable period in 1996. This reduction
was primarily attributable to fewer loan originations during
the second quarter of 1997 as a result of higher interest
rates during that period. Although the Company experienced
more loan refinancing activity during 1996, it increased its
volume in the home purchase financing market during the second
quarter of 1997, which has a higher profit margin. The demand
for housing in the intermountain area remains strong.
Realized gains on investments increased by $266,000 to
$234,000 for the three months ended June 30, 1997 from a loss
of $32,000 for the comparable period in 1996. This increase
was the result of the sale of investments in securities during
the second quarter of 1997.
Total benefits and expenses were $6,785,000, or 97.2% of total
revenues for the three months ended June 30, 1997, as compared
to $7,225,000, or 96.6% of total revenues for the three months
ended June 30, 1996.
Death benefits, surrenders and other policy benefits and
increase in future policy benefits increased by $227,000, or
14.9%, to $1,746,000 for the three months ended June 30, 1997,
from $1,519,000 for the comparable period in 1996. This
increase was primarily the result of an increase in death
claims and health benefits paid.
Amortization of deferred policy acquisition costs increased by
$14,000, or 4.5%, to $325,000, for the three months ended June
30, 1997, from $311,000 for the comparable period in 1996.
This increase was expected since policies in force have
increased from one year ago.
General and administrative expenses decreased by $689,000, or
15.6%, to $3,735,000 for the three months ended June 30, 1997,
from $4,424,000 for the comparable period in 1996. This
reduction in general and administrative expenses primarily
resulted from a decrease in commissions and other expenses due
to fewer mortgage loan originations having been made by the
Company's mortgage subsidiary.
Interest expense decreased by $99,000, or 27.6%, to $260,000
for the three months ended June 30, 1997, from $359,000 for
the comparable period in 1996. This decrease was primarily
due to fewer mortgage loan originations by the Company's
mortgage subsidiary.
Cost of goods and services sold of the mortuaries and
cemeteries increased by $107,000, or 17.5%, to $719,000 for
the three months ended June 30, 1997, from $612,000 for the
comparable period in 1996. This increase was consistent with
the increase in net mortuary and cemetery sales.
<PAGE>
Six Months Ended June 30, 1997 as Compared to Six Months Ended
June 30, 1996
Total revenues decreased by $1,229,000, or 7.9%, to
$14,402,000 for the six months ended June 30, 1997, from
$15,631,000 for the six months ended June 30, 1996.
Contributing to this reduction in total revenues was a
$399,000 decrease in net investment income and a $1,594,000
decrease in mortgage fee income. These decreases were
partially offset by a $478,000 increase in net mortuary and
cemetery sales, and a $296,000 increase in realized gains in
investments.
Net investment income decreased by $399,000, or 10.3%, to
$3,466,000 for the six months ended June 30, 1997, from
$3,865,000 for the comparable period in 1996. This decrease
was attributable to the Company maintaining larger cash and
short term investment balances and warehousing fewer mortgage
loans during the first six months of 1997.
Net mortuary and cemetery sales increased by $478,000, or
11.1%, to $4,773,000 for the six months ended June 30, 1997,
from $4,295,000 for the comparable period in 1996. This
increase was primarily related to additional preneed sales
from the opening of Singing Hills Memorial Park Cemetery in
San Diego, California during the third quarter of 1996.
Preneed sales of cemetery and mortuary products also increased
at the Company's other cemeteries and mortuaries.
Mortgage fee income decreased by $1,594,000, or 35.6%, to
$2,888,000 for the six months ended June 30, 1997, from
$4,482,000 for the comparable period in 1996. This reduction
was primarily attributable to fewer loan originations during
the first six months of 1997 as a result of higher interest
rates during that period. Although the Company experienced
more loan refinancing activity during 1996, it increased its
volume in the home purchase financing market during the first
six months of 1997, which has a higher profit margin. The
demand for housing in the intermountain area remains strong.
Realized gains on investments increased by $296,000 to
$270,000 for the three months ended June 30, 1997 from a loss
of $26,000 for the comparable period in 1996. This increase
was the result of the sale of investments in securities during
the second quarter of 1997.
Total benefits and expenses were $13,695,000, or 95.1% of
total revenues for the six months ended June 30, 1997, as
compared to $14,967,000, or 95.8% of total revenues for the
six months ended June 30, 1996.
Death benefits, surrenders and other policy benefits and
increase in future policy benefits increased by $7,000, or
.2%, to $3,284,000 for the six months ended June 30, 1997,
from $3,277,000 for the comparable period in 1996. This
slight increase was primarily the result of a decrease in
annuity interest expense due to fewer annuity policies in
force.
Amortization of deferred policy acquisition costs decreased by
$6,000, or .9%, to $639,000, for the six months ended June 30,
1997, from $645,000 for the comparable period in 1996. This
decrease was expected since policies in force are essentially
the same as a year ago.
<PAGE>
General and administrative expenses decreased by $1,299,000,
or 14.3%, to $7,783,000 for the six months ended June 30,
1997, from $9,082,000 for the comparable period in 1996. This
reduction in general and administrative expenses primarily
resulted from a decrease in commissions and other expenses due
to fewer mortgage loan originations having been made by the
Company's mortgage subsidiary.
Interest expense decreased by $226,000, or 29.6%, to $538,000
for the six months ended June 30, 1997, from $764,000 for the
comparable period in 1996. This decrease was primarily due to
fewer mortgage loan originations by the Company's mortgage
subsidiary.
Cost of goods and services sold of the mortuaries and
cemeteries increased by $251,000, or 20.9%, to $1,451,000 for
the six months ended June 30, 1997, from $1,200,000 for the
comparable period in 1996. This increase was consistent with
the increase in net mortuary and cemetery sales.
Liquidity and Capital Resources
The Company's life insurance subsidiary 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.
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 predominately in
fixed maturity securities and warehouse mortgage loans on a
short-term basis before selling the loans to investors in
accordance with the requirements and laws governing the life
insurance subsidiary. Bonds owned by the insurance subsidiary
amounted to $47,036,000, at amortized cost as of June 30, 1997
compared to $47,906,000 at amortized cost as of December 31,
1996. This represents 58% of the total insurance related
investments in 1997 as compared to 63% in 1996. Generally all
bonds owned by the life insurance subsidiary are rated by the
National Association of Insurance Commissioners (NAIC). Under
this rating system, there are six categories used for rating
bonds. At June 30, 1997, 4.0% ($1,950,000) and at December
31, 1996, 4.1% ($1,994,000) of the Company's total investment
in bonds were invested in bonds in rating categories three
through six which are considered non-investment grade.
<PAGE>
The Company intends to hold its fixed income securities,
including high-yield securities, in its portfolio 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 high-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 December 31, 1996
and 1995, the life subsidiary exceeded the regulatory
criteria.
The Company's capitalization of stockholders' equity and long
term debt was $33,803,000 for the six months ended June 30,
1997 as compared to $34,352,000 for the six months ended June
30, 1996. Stockholders' equity as a percent of capitalization
increased to 70.7% for the six months ended June 30, 1997 from
65.0% for the six months ended June 30, 1996 and as a percent
of assets increased to 19.4% from 17.5%, respectively.
Lapse rates measure the amount of insurance terminated during
a particular period. The Company's lapse rate for life
insurance for 1996 was 12% as compared to a rate of 10.5% for
1995. The 1997 lapse rate is approximately the same as 1996.
In February 1997, the Company purchased all of the outstanding
shares of common stock of Crystal Rose Funeral Home, Inc., an
Arizona based mortuary, for a total consideration of $547,000.
The purchase price included a note to the former owner in the
amount of $297,000.
At June 30, 1997, $9,864,000 of the Company's consolidated
stockholders' equity represents the statutory stockholders'
equity of the Company's insurance subsidiary. The life
insurance subsidiary cannot pay a dividend to its parent
company without the approval of insurance regulatory
authorities.
<PAGE>
<TABLE>
<CAPTION>
<S> <C>
Part II Other Information:
Item 1. Legal Proceedings
NONE
Item 2. Changes in Securities
NONE
Item 3. Defaults Upon Senior Securities
NONE
Item 4. Submission of Matters to a Vote of Security Holders
NONE
Item 5. Other Information
NONE
Item 6. Exhibits and Reports on Form 8-K
NONE
(a)(3) Exhibits
The following Exhibits are filed herewith pursuant to Rule
601 of Regulation S-K or are incorporated by reference to
previous filings.
Exhibit
Table No Document
-------- ---------
(a)(3) Exhibits:
EX-27
</TABLE>
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange
Act of 1934, the Registrant has duly caused this report to be
signed on its behalf by the undersigned thereunto duly
authorized.
REGISTRANT
SECURITY NATIONAL FINANCIAL CORPORATION
Registrant
DATED: August 14, 1997 By: George R. Quist,
--------------- ---------------
Chairman of the Board,
President and Chief
Executive Officer
(Principal Executive
Officer)
DATED: August 14, 1997 By: Scott M. Quist
--------------- --------------
First Vice President,
General Counsel and
Treasurer (Principal
Financial and Accounting
Officer)
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 7
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> JUN-30-1997
<DEBT-HELD-FOR-SALE> 47,041,539
<DEBT-CARRYING-VALUE> 0
<DEBT-MARKET-VALUE> 0
<EQUITIES> 3,960,205
<MORTGAGE> 8,063,808
<REAL-ESTATE> 7,708,748
<TOTAL-INVEST> 74,564,908
<CASH> 8,618,578
<RECOVER-REINSURE> 0
<DEFERRED-ACQUISITION> 4,267,827
<TOTAL-ASSETS> 123,288,821
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0
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