Earnings per Share

6 Months Ended

Jun. 30, 2012

Net Income (Loss) Attributable To Hallmark Financial Services, Inc. Common Stockholders:

Earnings Per Share [Text Block]

14. Earnings per Share

The following table sets forth basic and diluted weighted average shares outstanding for the periods indicated (in thousands):

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Weighted average shares - basic		19,263		20,033		19,263		20,078
Effect of dilutive securities		-		-		-		-
Weighted average shares - assuming dilution		19,263		20,033		19,263		20,078

For the three months and six months ended June 30, 2012, 809,999 shares of common stock potentially issuable upon the exercise of employee stock options were excluded from the weighted average number of shares outstanding on a diluted basis because the effect of such options would be anti-dilutive. For the three months and six months ended June 30, 2011, 939,166 shares of common stock potentially issuable upon the exercise of employee stock options were excluded from the weighted average number of shares outstanding on a diluted basis because the effect of such options would be anti-dilutive.