8-K

                                UNITED STATES
                      SECURITIES AND EXCHANGE COMMISSION
                           Washington, D. C. 20549

                                    FORM 8-K

                                CURRENT REPORT

    Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934



     Date of Report (Date of earliest event reported):  September 5, 2003


                      HALLMARK FINANCIAL SERVICES, INC.
                      ---------------------------------
            (Exact name of registrant as specified in its charter)



            Nevada                  0-16090                87-0447375
 ----------------------------     -----------          -------------------
 (State or other jurisdiction     (Commission             (IRS Employer
      of incorporation)           File Number)         Identification No.)



   777 Main Street, Suite 1000, Fort Worth, Texas             76102
   ----------------------------------------------          ----------
      (Address of principal executive offices)             (Zip Code)



   Registrant's telephone number, including area code:  (817) 348-1600


                                Not Applicable
        --------------------------------------------------------------
        (Former name or former address, if changed since last report.)



 Item 7.   Financial Statements, Pro Forma Financial Information and
           Exhibits.

 (c)       Exhibits.

           99.1 Press release dated September 5, 2003



 Item 9.   Regulation FD Disclosure.

      On September 5, 2003, the Registrant issued a press release  announcing
 the completion of  its rights offering.   A copy  of the Registrant's  press
 release is attached as Exhibit 99.1 to this Current Report.



                                  SIGNATURES

      Pursuant to the requirements of the Securities Exchange Act of 1934,
 the registrant has duly caused this report to be signed on its behalf by the
 undersigned hereunto duly authorized.


                               HALLMARK FINANCIAL SERVICES, INC.


 Date:  September 5, 2003      By: /s/Timothy A. Bienek
                               ------------------------
                               Timothy A. Bienek, Its President

EX-99.1

                                                                 Exhibit 99.1


                            FOR IMMEDIATE RELEASE

                      HALLMARK FINANCIAL SERVICES, INC.
                    SUCCESSFULLY COMPLETES RIGHTS OFFERING

 Fort Worth, Texas,  (September 5, 2003) - Hallmark Financial  Services, Inc.
 (AMEX:  HAF.EC), announced  today  the completion  of its  rights  offering.
 Stockholders  exercised  subscription  rights  to  purchase  the  entire  25
 million shares offered at  a subscription price of $0.40 per  share, raising
 gross proceeds  of $10.0 million.  There were 18.0 million shares  purchased
 through  the exercise of  basic subscription  rights and  an additional  7.0
 million  shares  purchased  through the  over  subscription  privilege.  The
 proceeds from the rights  offering will be used to repay the bridge  loan to
 Newcastle Partners, L.P. and for general corporate purposes.

 In aggregate, Hallmark received cash commitments  for $13.5 million totaling
 33.7   million  shares.  Hallmark   has  accepted   all  validly   exercised
 subscription rights  limited to the $10  million offering size.   Hallmark's
 transfer  agent is  in the  process of  distributing  stock certificates  to
 stockholders exercising their subscription rights.

 Commenting  on the  rights  offering, Mark  E.  Schwarz, Chairman  and  CEO,
 stated,  "We are  pleased by  the wide  spread participation  in the  rights
 offering by our stockholders. The rights offering proved to be a stockholder
 friendly and efficient mechanism to raise  capital.  Proceeds to the Company
 were maximized because  no underwriter or  sales agent  was necessary in the
 process. Having completed  the offering, Hallmark's capital structure is now
 primarily equity  and better positioned  to support the future growth of the
 company."

 Hallmark Financial Services, Inc. engages primarily in  the sale of property
 and casualty insurance products.  The Company's business involves marketing,
 underwriting  and premium  financing  of  non-standard  personal  automobile
 insurance  primarily in Texas, Arizona and New  Mexico, marketing commercial
 insurance in Texas,  New Mexico,  Idaho, Oregon and  Washington, third party
 claims administration,  and other  insurance related  services.  The Company
 is headquartered in Fort Worth,  Texas and its common stock is listed on the
 American Stock Exchange under the symbol "HAF.EC".

 Forward-looking statements  in this Release are  made pursuant to the  "safe
 harbor"  provisions  of  the  Private Securities  Litigation  Act  of  1995.
 Investors are  cautioned that actual results  may differ substantially  from
 such forward-looking  statements.  Forward-looking statements  involve risks
 and  uncertainties including, but  not limited  to, continued acceptance  of
 the  Company's  products  and  services   in  the  marketplace,  competitive
 factors, interest  rate trends, the availability of  financing, underwriting
 loss experience and other risks detailed from time to  time in the Company's
 periodic report filings with the Securities and Exchange Commission.

                   For further information, please contact:
             Timothy A. Bienek, President and COO at 817.348.1600
                             www.hallmarkgrp.com