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Security National Financial Corporation Reports Financial Results for the Second Quarter Ended June 30, 2013



  Security National Financial Corporation Reports Financial Results for the
  Second Quarter Ended June 30, 2013

Business Wire

SALT LAKE CITY -- August 15, 2013

Security National Financial Corporation (SNFC) (NASDAQ symbol "SNFCA")
announced financial results for the second quarter ended June 30, 2013.

SNFC announced revenues of $61,332,000 for the three months ended June 30,
2013. This represents an 8.5% increase from 2012. Pre-tax earnings from
operations for the three-month period decreased from $5,036,000 in 2012 to
$4,470,000. After tax earnings decreased from $3,593,000 in 2012 to $2,799,000
in 2013.

SNFC announced revenues of $116,185,000 for the six months ended June 30,
2013. This represents an 11.9% increase over 2012. Pre-tax earnings from
operations for the six-month period increased from $7,365,000 in 2012 to
$7,697,000 in 2013. After tax earnings decreased from $5,255,000 in 2012 to
$4,833,000 in 2013.

Scott Quist, President of the Company, said, “We are very pleased with the
second quarter results of our company, especially given the economic
circumstances. This represents the Company’s second best first half in its
history, and its third best second quarter in its history. During the second
quarter interest rates, as measured by the 10 year Treasury bond, increased
60% in a single 30 day period which stifled the mortgage refinance market that
many of our competitors have relied upon and which refinances represented 77%
of industry wide volume. Yet, despite the rise, rates remained at or below
2.75%, well below the minimum interest rate we target for our life company
investments.

“As we entered the quarter we had $79.1 million in cash which cash came from a
December 2012 life company acquisition and the payoff of certain investments.
That amount of cash is a definite drain on life segment profitability until it
can be invested. After investment it becomes a huge positive. Using just an
assumed 4% rate that cash, when invested, represents $3.2 million in
annualized earnings. During the quarter we invested approximately $18,000,000
in bonds and new commercial loans at a blended rate exceeding 6% with another
$16,000,000 invested in new commercial income producing properties at cap
rates averaging 9%. It should be noted that we anticipated our cash position
well before year end 2012, but it has taken us longer than anticipated to find
suitable high quality higher yielding investments. Nevertheless, as that cash
is put to work our life segment profitability will improve. Finally it should
be noted that life sales in our pre need and final expense distribution
channels, representing 90% of new production, continue to grow and had two
all-time high weeks during the second quarter. Overall new life sales
increased 17%, as measured by premium, over 2012.

“Our death care segment, exclusive of the REO depreciation and related costs,
improved their year to date operating profit by 8% on a 23% increase in
revenue. Sales costs did rise during the first six months but, nevertheless,
EBITD stood at 15.94% at quarter end. As has been mentioned previously,
operational earnings of our death care segment are skewed by the depreciation
on investment real estate that we have those companies manage.

“Our mortgage segment continues to see the positive results of our conversion
from wholesale to retail originations and our continuing emphasis on purchase
related business rather than refinance. At the start of the quarter we were
57% purchase originated business which is 250% better than the reported
industry purchase percentage of 23%. At the end of the quarter we had
increased our purchase percentage and stood at almost 70% purchase related
business. As a result of our heavy purchase business emphasis as interest
rates rose during the quarter we experienced much less loan fallout, giving us
a 28% improvement in profitability on a 13% improvement in revenue. We
continue to believe that we are improving our market share in those geographic
areas that we serve.”

SNFC has three business segments. The following table shows the revenues and
earnings before taxes for the three months and six months ended June 30, 2013
as compared to 2012 for each of the three business segments:

For the three months ended June 30, 2013:

                            Revenues                                       Earnings (Losses) before Taxes
                            2013             2012             %            2013            2012              %
Life Insurance              $ 16,797,000     $ 17,482,000     -3.9 %       $ 441,000       $ 2,054,000       -78.5 %
                                                                                                                    
Cemeteries/Mortuaries         3,381,000        2,730,000      23.8 %         108,000         (77,000   )     240.3 %
                                                                                                                    
Mortgages                     41,154,000       36,316,000     13.3 %         3,921,000       3,059,000       28.2  %
                                                                                                                    
Total                       $ 61,332,000     $ 56,528,000     8.5  %       $ 4,470,000     $ 5,036,000       -11.2 %
                                                                                                                    

For the six months ended June 30, 2013:

                            Revenues                                         Earnings (Losses) before Taxes
                            2013              2012              %            2013            2012            %
Life Insurance              $ 34,041,000      $ 35,109,000      -3.0 %       $ 1,255,000     $ 2,892,000     -56.6 %
                                                                                                                    
Cemeteries/Mortuaries         6,361,000         5,690,000       11.8 %         184,000         149,000       23.5  %
                                                                                                                    
Mortgages                     75,783,000        63,052,000      20.2 %         6,258,000       4,324,000     44.7  %
                                                                                                                    
Total                       $ 116,185,000     $ 103,851,000     11.9 %       $ 7,697,000     $ 7,365,000     4.5   %
                                                                                                                    

Net earnings per common share were $.25 for the three months ended June 30,
2013, compared to $.36 per share for the prior year as adjusted for the effect
of annual stock dividends. Net earnings per common share was $.44 for the six
months ended June 30, 2013, compared to $.52 per share for the prior year as
adjusted for the effect of annual stock dividends. Book value per common share
was $7.69 as of June 30, 2013, compared to $7.36 as of December 31, 2012. The
Company has two classes of common stock outstanding, Class A and Class C. The
Class C shares share in distribution of earnings and capital on a 10-for-1
basis with the Class A shares; therefore, for earnings per share and book
value per share calculations, the Class C shares are converted to Class A
shares on a 10-for-1 basis. There were 11,118,671 Class A equivalent shares
outstanding as of June 30, 2013.

If there are any questions, please contact Mr. Scott M. Quist or Mr. Garrett
S. Sill at:

Security National Financial Corporation
P.O. Box 57250
Salt Lake City, Utah 84157
Phone (801) 264-1060
Fax (801) 265-9882

Contact:

Security National Financial Corporation
Scott M. Quist or Garrett S. Sill
801-264-1060
fax: 801-265-9882
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