POWER OF ATTORNEY



Know all by these presents, that I, CURTIS R. DONNELL, hereby constitute and

appoint each of Mark E. Schwarz, Mark J. Morrison, Jeffrey R. Passmore and

Steven D. Davidson, signing singly, as my true and lawful attorney-in-fact

to:



(1) Execute for me and on my behalf, in my capacity as an officer and/or

director of Hallmark Financial Services, Inc. (the "Company"), Forms 3, 4,

and 5 with respect to the beneficial ownership of securities of the Company

in accordance with Section 16(a) of the Securities Exchange Act of 1934 and

the rules thereunder;



(2) Do and perform any and all acts for and on behalf of the undersigned

which may be necessary or desirable to complete and execute any such Form 3,

4, or 5, complete and execute any amendment or amendments thereto, and

timely file such form with the United States Securities and Exchange

Commission and any stock exchange or similar authority; and



(3) Take any other action of any type whatsoever in connection with the

foregoing which, in the opinion of such attorney-in-fact, may be of benefit

to, in the best interest of, or legally required by the undersigned, it

being understood that the documents executed by such attorney-in-fact on

behalf of the undersigned pursuant to this Power of Attorney shall be in

such form and shall contain such terms and conditions as such attorney-in-

fact may approve in such attorney-in-fact's discretion.



The undersigned hereby grants to each such attorney-in-fact full power and

authority to do and perform any and every act and thing whatsoever requisite,

necessary, or proper to be done in the exercise of any of the rights and

powers granted above, as fully to all intents and purposes as the undersigned

might or could do if personally present, with full power of substitution or

revocation, hereby ratifying and confirming all that such attorney-in-fact,

or such attorney-in-fact's substitute or substitutes, shall lawfully do or

cause to be done by virtue of this power of attorney and the rights and powers

herein granted. The undersigned acknowledges that the foregoing attorneys-in-

fact, in serving in such capacity at the request of the undersigned, are not

assuming any of the undersigned's responsibilities to comply with Section 16

of the Securities Exchange Act of 1934.



This Power of Attorney shall remain in full force and effect until the

undersigned is no longer required to file Forms 3, 4, and 5 with respect to

the beneficial ownership of securities of the Company, unless earlier revoked

by the undersigned in a signed writing delivered to the foregoing attorneys-in-

fact and the Company.



IN WITNESS WHEREOF, the undersigned has caused this Power of Attorney to be

executed as of this 3rd day of August, 2006.





                                          /s/ Curtis R. Donnell