Item 1.01 Entry into a Material Definitive Agreement

On July 11, 2012, Hallmark Financial Services, Inc. ("HFS") and each of its subsidiaries (collectively with HFS, the "Company") entered into a Ninth Amendment to First Restated Credit Agreement (the "Ninth Amendment") with Frost Bank ("Frost") effective as of July 10, 2012. The Ninth Amendment extends the termination date of the credit facilities to September 30, 2012, and provides certain waivers. The foregoing description of the Ninth Amendment is qualified in its entirety by reference to the definitive agreement filed as an exhibit to this Current Report on Form 8-K and incorporated herein by this reference.

Item 9.01 Financial Statements and Exhibits

(c) Exhibits.

10.1 Ninth Amendment to First Restated Credit Agreement among Hallmark Financial Services, Inc. and its subsidiaries and Frost Bank dated July 10, 2012.