Earnings Per Share

12 Months Ended

Dec. 31, 2012

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

11. Earnings Per Share:

We have adopted the provisions of ASC 260, “Earnings Per Share,” requiring presentation of both basic and diluted earnings per share. A reconciliation of the numerators and denominators of the basic and diluted per share calculations is presented below (in thousands, except per share amounts):

	2012		2011			2010
Numerator for both basic and diluted earnings per share:
Net income (loss) attributable to Hallmark Financial Services,  Inc.	$	3,524	$	(10,891	)	$	7,403
Denominator, basic shares		19,263		19,673			20,123
Effect of dilutive securities:
Stock options		6		-			52
Denominator, diluted shares		19,269		19,673			20,175
Basic earnings per share:	$	0.18	$	(0.55	)	$	0.37
Diluted earnings per share:	$	0.18	$	(0.55	)	$	0.37

We had 794,999 shares, 809,999 shares and 899,166 shares of common stock potentially issuable upon exercise of employee stock options for years ended December 31, 2012, 2011 and 2010, respectively, that were excluded from the weighted average number of shares outstanding on a diluted basis because the effect of such options would be anti-dilutive. These instruments expire at varying times from 2016 to 2021.