Tectonic Advisors LLC (“Tectonic Advisors”) is a registered investment adviser based in Frisco, Texas. We are a limited liability company formed under the laws of the State of Texas. We have been providing investment advisory services since 2006. Tectonic Advisors LLC is owned by Tectonic Financial Inc. Arthur Haag Sherman (CRD#2813406) is the principal owner of Tectonic Financial Inc. Stephen Mangold (CRD# 2359974) is our Chief Compliance Officer. Assets Under Management As of December 31, 2023, Tectonic Advisors manages discretionary assets under management of $3,500,373,228 and non-discretionary assets under management of $101,884,352. Portfolio Management Tectonic Advisors offers investment advisory services to individuals, banking institutions, corporations, trusts, and pension plans in three programs: (1) Separately Managed Account Program, (2) T-Bank Program, Advisor to Collective Investment Funds and (3) Model Portfolio Advisor Program. Separately Managed Account Program (“SMA Program”) Tectonic Advisors offers discretionary portfolio management services to individuals, corporations, trusts and pension plans. Tectonic Advisors invests Client’s assets in securities that it deems consistent with clients stated investment objectives and according to the Investment Policy Statement executed by the Client. Tectonic Advisors offers portfolios largely, if not entirely, comprised of exchange-traded funds (ETFs) and other securities, in the SMA Program (“Tectonic portfolio”). Tectonic portfolio strategies range from a conservative Capital Preservation, to a more aggressive all US Equity, portfolio. Tectonic portfolios generally use a diversified asset allocation approach, with a proprietary dynamic process that re- balances the portfolios based on certain criteria with a goal of mitigating risk and providing a consistent return commensurate or better than the portfolio’s benchmark. Client assets in the Tectonic portfolios will be invested in exchange-traded funds (ETFs), index funds, exchange-trades notes (ETNs), master limited partnerships, mutual funds and from time to time client portfolios may include other securities (such as stocks, bonds and other securities). Clients in consultation with Tectonic Advisors will execute an Investment Advisory Agreement and select a strategy that will be described within the Client’s Investment Policy Statement. Minimum investments vary by strategy. Clients will pay an investment advisory fee to Tectonic Advisors as well as the expenses attributable to the ETF, index fund, ETN, mutual fund or other security as well as custodial and other costs (such as trading or administration costs). Client may impose reasonable restrictions on the management of their account subject to the approval of Tectonic Advisors. Clients will be directed to utilize the custody and execution services of Charles Schwab & Co., Inc. (“Schwab”), or such other custodian as Tectonic Advisors may select and which is suitable for the client. The minimum investment required to establish an SMA Program account is $250,000. Tectonic Advisors may waive the minimum account size at its sole and absolute discretion. Tectonic Advisors may provide customized allocations. Customized allocations may include the use of third-party Investment Managers. Clients are instructed to review the Form ADV Part 2A of each third- party Investment Manager recommended. T-Bank Program Tectonic Advisors offers discretionary advisory services to its affiliated bank, T Bank, N.A. (T Bank) for its Collective Investment Funds (“CIF”). These funds are used by qualified plans (i.e., 401K, etc.) and common trust funds for personal assets (i.e., individual, joint, etc.). Investors in the T Bank funds are generally clients of affiliated advisory firm, Cain Watters & Associates, L.L.C. (“CWA") See Financial Industry Activities and Affiliations for additional information regarding conflicts. The funds may also include investors who are not clients of CWA. Model Portfolio Advisor Program Tectonic Advisors, in conjunction with its affiliated investment adviser, Cain, Watters & Associates (“CWA”), offers CWA’s clients access to the Unified Managed Account (“UMA”) Platform. UMAs are single accounts in which a client will have multiple managers and asset classes. Each manager and/or asset class can be managed via a separate account or “sleeve” of the account. Depending on a variety of factors including, but not limited to client risk tolerance and client asset size, a UMA account could include one or more money managers in the equity, fixed income, and/or alternatives space, that are run in a separate account or “sleeve”. The rest of the UMA will be invested with mutual funds and exchange traded funds (ETFs). The resulting portfolio will be a mixture of individual equities, individual bonds, pooled investments, ETFs, and mutual funds, and will represent a complete asset allocation for the client based upon their risk tolerance and investment needs. The transactions in Client accounts will be executed by Charles Schwab & Co., Inc. (“Schwab”), which will also receive a portion of the fee for trade execution services. The UMA Platform provides clients with access to a diversified suite of certain portfolio models ranging from preservation of capital to aggressive growth. These models were developed in conjunction with one or more professional independent money managers that manage different components of a client’s targeted asset allocation based upon the client’s financial circumstances, goals and investment objectives. Tectonic Advisors operates technology platforms that are used to manage the models, including trading, rebalancing, billing, performance reporting, and certain other administrative services. In addition, Tectonic Advisors provides asset allocation advice, and model provider due diligence and recommendations to CWA regarding model construction and management. The UMA program requires the approved model providers to meet certain due diligence criteria established by CWA and to operate pursuant to certain operational and technological constraints as prescribed by Tectonic Advisors and/or the custodian. Given differences in the ways in which particular clients' individual circumstances are identified and in which those circumstances are interpreted by different Associated Persons of CWA, different clients having the same or closely related personal circumstances and risk profiles may receive somewhat different asset allocation recommendations and, as a result, different investment manager or mutual fund recommendations. UMA Platform clients may request that CWA and Tectonic Advisors consider certain investments offered on the Capital Integration Systems LLC (“CAIS”) Alternative Investments Portal as potential investments for the client’s UMA Account. In the event that CWA and Tectonic Advisors determine that one or more such investments may be appropriate for the client’s UMA Account, the client will be provided a copy of such investment’s offering documents, and CWA and Tectonic Advisors will assist the client in reviewing and completing such offering documents. However, neither CWA nor Tectonic Advisors will have discretionary authority to select any CAIS investment on behalf of a UMA client; rather, CWA and Tectonic Advisors will be authorized only to make recommendations regarding any such CAIS investment, and each such client will be solely responsible for the decision to invest in any CAIS investment.

Please refer to important risk disclosures pertaining to alternative investments in Item 8 below. Family Office Services Tectonic Advisors provides family office services that are uniquely designed to help families coordinate their multiple forms of capital using a holistic and collaborative team approach combining the many elements inherent to a successful life with wealth. Our collective experiences support our belief that a dedicated team of independent and objective professionals working in collaboration with each other in partnership with the family is the best way to serve families of significant wealth. Such a relationship enhances Tectonic Advisors’ ability to advise families on the opportunities and risks that their wealth presents allowing families to make better, educated decisions. Initially, Tectonic Advisors meets with the prospective Client to obtain information about their overall situation. This information is used to assist Tectonic Advisors in understanding a Client’s needs and the scope of services that are most appropriate for the Client’s situation. The family office services Tectonic Advisors will provide will be specifically described in the Family Office Services Agreement you enter into with our firm. Additional services beyond the scope of the Family Office Services Agreement may be provided under separate agreement(s) and may include a separate fee as mutually agreed to by Tectonic Advisors and the Client. Our family office services vary by family and occasionally within families, but may include the following:
• Information Management and Coordination – We organize key information and the coordinate such information with the family, the family’s accountant, attorney, insurance agents, and other key advisors.
• Estate, Gift & Trust Planning – We provide explanations, summaries, and illustrations of existing and proposed estate planning documents and strategies, including recommendations and education on additional strategies, considerations for making updates periodically and further coordination with family’s tax and legal advisor(s) to implement agreed upon strategies or updates.
• Income Tax Planning – Includes planning for the minimization of tax liabilities, including asset location, tax loss harvesting and gain minimization planning, charitable asset selection, facilitation of income tax payments and coordination with family’s tax advisor(s).
• Financial Planning – Includes planning related to cash flow analysis, capital sufficiency modeling, lifestyle goals, credit usage, major asset purchases or liquidations, and significant life events.
• Philanthropic Planning – Includes defining philanthropic goals, education on philanthropic vehicles and strategies for maximizing the benefits of philanthropy across the family and the organizations they choose to benefit.
• Education – Includes both individual and group-based learning sessions around various planning, tax, investment and other topics with an intention of growing not only the family’s financial capital, but non-financial capital as well. These topics while commonly focused on younger generations are generally available across all generations.
• Family Meetings – Includes facilitation of family meetings often across multiple generations around shared ownership, philanthropy, decision making or shared goals and objectives.
• Assistance with Trust Administration – Includes advice around trustee selection and ongoing guidance, general understanding of trust purposes and provisions. Often involves education for grantors, trustees, and beneficiaries on their respective roles and responsibilities.
• Consolidated Reporting Services – Allows the family to customize how their assets are reported by offering a view across multiple accounts or entities in a single statement and/or to segregate assets within accounts. This service may include assets not generally managed by Tectonic Advisors such as closely-held private family assets. Allows the family and their advisors to understand and monitor the total family balance sheet and provide comprehensive and integrated advice from a vantage point inclusive of the family’s entire wealth landscape. This may require an additional fee depending on the nature and complexity of the non-managed assets being reported on. Any additional fees will be mutually agreed to in advance.
• Asset Protection Planning and Review – Includes review and discussion of strategies that may avoid or minimize a portion of a family’s balance sheet at risk. These strategies will be evaluated on the benefits they may provide against the degree and likelihood of loss and the complexity and administration they may require to achieve such protections.
• Liability Risk Management Planning and Review – Includes advice on a combination of mitigation strategies including the use of special purpose entities, trusts and/or various insurance tools. We will review the family’s assets and liabilities to determine: location, titling and ownership structure. We will review existing or proposed policies and, after receiving your permission, we may facilitate reviews with unaffiliated third-party professionals. Tectonic Advisors does not receive compensation for recommending or placing insurance nor do we receive compensation from such third parties with whom we may involve to review your situation.
• Estate Tax Liquidity Planning and Review – Includes determination of estate tax liquidity needs and determination of potential liquidity sources including asset liquidations and life insurance. We will review existing or proposed policies and, after receiving your permission, we may facilitate reviews with unaffiliated third-party professionals. Tectonic Advisors does not receive compensation for recommending or placing insurance nor do we receive compensation from such third parties with whom we may involve to review your situation. The advice we propose is designed to achieve the Client’s desired goals which may require revision to meet changing circumstances. Our recommendations are based on your situation from the information provided to the firm. Families may choose to accept or reject our recommendations. We should be notified promptly of any change to your situation, goals, objectives, or needs. Due Diligence Provider Tectonic Advisors provides research and due diligence services to our affiliate, Cain Watters and Associates, L.L.C. (“CWA”) related to certain investment programs CWA recommends to its clients. Currently these consist of a Pooled Investment Program (collective and common trust funds), Separately Managed Account Program (SMA), Multi-Manager Account Program (MMA), Unified Managed Account Program (UMA), and Participant Directed and Retirement Investment Program. These services include the following but may vary depending upon the program: a. Asset allocation analysis; b. Research on investments and securities including alternative forms of investments (i.e. commodities or real estate, etc.); c. Due diligence research on investment, securities and asset management companies and managers; d. Periodic monitoring of investment, securities and asset management companies and managers; e. Assistance in selection of investment, securities and asset management companies and managers; f. Research on specific investments and securities in whatever form they may take; g. General research about investments, securities and asset allocation; h. Global investment services.