Ownership Submission
FORM 4
Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP OF SECURITIES

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940
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(Print or Type Responses)
1. Name and Address of Reporting Person *
SCHWARZ MARK E
   2. Issuer Name and Ticker or Trading Symbol
HALLMARK FINANCIAL SERVICES INC [HALL] 		5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)
__X__ Director __X__ 10% Owner
__X__ Officer (give title below) _____ Other (specify below)
Executive Chairman
(Last)
(First)
(Middle)
200 CRESCENT COURT, SUITE 1400		 3. Date of Earliest Transaction (Month/Day/Year)
04/17/2014
(Street)

DALLAS, TX 75201		 4. If Amendment, Date Original Filed(Month/Day/Year)
 6. Individual or Joint/Group Filing(Check Applicable Line)
___ Form filed by One Reporting Person
_X_ Form filed by More than One Reporting Person
(City)
(State)
(Zip)
Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1.Title of Security
(Instr. 3)		 2. Transaction Date (Month/Day/Year) 2A. Deemed Execution Date, if any (Month/Day/Year) 3. Transaction Code
(Instr. 8)		 4. Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4 and 5)		 5. Amount of Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 3 and 4)		 6. Ownership Form: Direct (D) or Indirect (I)
(Instr. 4)		 7. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V Amount (A) or (D) Price
Common Stock               130,805 D (1)  
Common Stock               949,702 I (4) Shares directly owned by NCM Services, Inc. (4)
Common Stock 04/17/2014   P   20,000 A $ 8.1 (2) 154,376 I (4) Shares directly owned by Newcastle Capital Management, L.P. (4)
Common Stock 04/21/2014   P   18,400 A $ 8.11 (3) 172,776 I (4) Shares directly owned by Newcastle Capital Management, L.P. (4)
Common Stock               3,730,432 I (4) Shares directly owned by Newcastle Partners, L.P. (4)

Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
(e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security
(Instr. 3)		 2. Conversion or Exercise Price of Derivative Security 3. Transaction Date (Month/Day/Year) 3A. Deemed Execution Date, if any (Month/Day/Year) 4. Transaction Code
(Instr. 8)		 5. Number of Derivative Securities Acquired (A) or Disposed of (D)
(Instr. 3, 4, and 5)		 6. Date Exercisable and Expiration Date
(Month/Day/Year)		 7. Title and Amount of Underlying Securities
(Instr. 3 and 4)		 8. Price of Derivative Security
(Instr. 5)		 9. Number of Derivative Securities Beneficially Owned Following Reported Transaction(s)
(Instr. 4)		 10. Ownership Form of Derivative Security: Direct (D) or Indirect (I)
(Instr. 4)		 11. Nature of Indirect Beneficial Ownership
(Instr. 4)
Code V (A) (D) Date Exercisable Expiration Date Title Amount or Number of Shares
Director Stock Option (right to buy) $ 12.52               (5) 05/24/2017 Common Stock 10,000   10,000 D (6)  
Director Stock Option (right to buy) $ 11.46               (5) 05/22/2018 Common Stock 5,000   5,000 D (6)  
Director Stock Option (right to buy) $ 6.61               (7) 04/01/2019 Common Stock 200,000   200,000 D (6)  
Director Stock Option (right to buy) $ 6.99               (5) 12/31/2021 Common Stock 14,157   14,157 D (6)  

Reporting Owners

Reporting Owner Name / Address Relationships
 Director  10% Owner  Officer  Other
SCHWARZ MARK E
200 CRESCENT COURT
SUITE 1400
DALLAS, TX 75201		   X   X   Executive Chairman  
Schwarz 2012 Family Trust
200 CRESCENT COURT
SUITE 1400
DALLAS, TX 75201		     X    
NCM SERVICES, INC.
200 CRESCENT COURT
SUITE 1400
DALLAS, TX 75201		     X    
NEWCASTLE CAPITAL GROUP LLC
200 CRESCENT COURT
SUITE 1400
DALLAS, TX 75201		     X    
NEWCASTLE CAPITAL MANAGEMENT LP
200 CRESCENT COURT
SUITE 1400
DALLAS, TX 75201		     X    
NEWCASTLE PARTNERS L P
200 CRESCENT COURT
SUITE 1400
DALLAS, TX 75201		     X    

Signatures

 Steven D. Davidson as Attorney-In-Fact for all Reporting Persons   04/21/2014
**Signature of Reporting Person Date

Explanation of Responses:

* If the form is filed by more than one reporting person, see Instruction 4(b)(v).
** Intentional misstatements or omissions of facts constitute Federal Criminal Violations. See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).
(1) Shares owned directly by Mr. Schwarz.
(2) Represents the weighted average purchase price of transactions effected at prices ranging from $8.08 per share to $8.10 per share. Upon written request by the SEC, the Issuer or a security holder of the Issuer, the Reporting Person will provide full information regarding the number of shares purchased at each separate price.
(3) Represents the weighted average purchase price of transactions effected at prices ranging from $8.10 per share to $8.12 per share. Upon written request by the SEC, the Issuer or a security holder of the Issuer, the Reporting Person will provide full information regarding the number of shares purchased at each separate price.
(4) Mr. Schwarz is the sole trustee of the Schwarz 2012 Family Trust (the "Trust") and a director and officer of NCM Services, Inc. ("NCMS"). The Trust is the sole shareholder of NCMS, which is the sole member of Newcastle Capital Group, L.L.C. ("NCG"), which is the general partner of Newcastle Capital Management, L.P. ("NCM"), which is the general partner of Newcastle Partners, L.P. ("NP"). Accordingly, Mr. Schwarz may be deemed the beneficial owner of all shares held by any of the Trust, NCMS, NCG, NCM or NP, and each of these entities may be deemed the beneficial owner of all shares held by the entities which they directly or indirectly own or control.
(5) Options are presently fully exercisable.
(6) Options directly owned by Mr. Schwarz.
(7) Options vest in seven equal annual installments commencing April 1, 2010.

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