Item 1.01 Entry into a Material Definitive Agreement

On September 28, 2012, Hallmark Financial Services, Inc. ("HFS") and each of its subsidiaries (collectively with HFS, the "Company") entered into a Tenth Amendment to First Restated Credit Agreement (the "Tenth Amendment") with Frost Bank ("Frost") effective as of September 30, 2012. The Tenth Amendment extends the termination date of the credit facilities to April 30, 2015, and amends certain covenants. The foregoing description of the Tenth 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 Tenth Amendment to First Restated Credit Agreement among Hallmark Financial Services, Inc. and its subsidiaries and Frost Bank dated September 30, 2012.