Callahan Advisors LLC

Item 5 – Fees and Compensation
Fees are charged quarterly in advance. Fees are based on the market value of the last business day of the
immediately preceding quarter as reported by the account custodian(s) and are calculated according to the type
and amount of various asset classes held in the account. At times, we will combine accounts across family
members. The current fee schedule is as follows:
Annual fees for Equities and Equity-Focused Exchange-Traded Funds (ETFs)
First $500,000                 1.00%
$500,000 - $1.5 million        0.80%
$1.5 - $2.5 million            0.65%
Excess over $2.5 million       0.50%
Fixed Income Fees
Annual fee of .40% on corporate, state, and local government bonds and fixed income-focused ETFs
Other Fees
Annual fee of 0.20% on certificates of deposit, U.S. Treasury securities, and other ETFs not included above,
including short-term U.S. Treasury ETFs.

                                                                                            Callahan Advisors, LLC
                                                                                       ADV Part 2A: Firm Brochure
                                                                                                       March 2026

                   We do not charge a fee on cash or money market funds.
This is a blended fee schedule. This means that fees are assessed at each tier, then added together for a single
investment management fee.

Fees vary from client to client depending on the fee schedule in effect when the client executed the investment
management agreement with Callahan Advisors.

Since we get paid based on the assets in the account, we have a conflict of interest with our clients, as we may
recommend the addition of assets to the account. Even though that advice may be in the client’s best interest,
the advice is conflicted because generally the more money in the account, the more we would collect in fees.
This conflict is mitigated by internal compliance policies and procedures designed to ensure that investment
recommendations are based on each client’s investment objectives, risk tolerance, and best interests, and not
on the advisory fees received.

Additionally, since we charge different fees for different asset classes, we have a conflict of interest with our
clients, as we could be incented to place client funds in the asset classes paying the highest fees. This conflict is
addressed through internal compliance oversight and periodic supervisory reviews designed to ensure that asset
allocation decisions are based on each client’s investment objectives and risk tolerance rather than the advisory
fees received.

Fees are negotiable and vary from client to client, so some clients receiving the same service pay different fees.
Callahan may negotiate fee arrangements based on factors including account size, complexity, and overall client
relationship. We do not differentiate our service based on the fees we charge our clients.

Our fees are exclusive of brokerage commissions, transaction fees, and other related costs and expenses which
are likely to be incurred by the client. Clients will incur certain charges imposed by custodians, brokers, third-
party investment, and other third parties, such as fees charged by managers, wire transfer fees, exchange fees,
margin interest, or other costs or fees associated with securities transactions or required by law. Our fees do not
include any internal fees and expenses of any money market, mutual, or exchange-traded fund.

Clients pay such fees directly, or a client may authorize the deduction of fees from the client’s account, which a
third-party custodian maintains. If fees are deducted from the client’s account, we promptly send the client an
invoice showing the amount of the advisory fee due, the account value on which the fee is based, and how the
fee was calculated. Accounts initiated or terminated during a calendar quarter will be charged a prorated fee
based on the number of days remaining in the quarter. Upon termination of any account, any prepaid fees will
be promptly refunded a pro-rata portion based on the number of days remaining in the quarter, and any earned,
unpaid fees will be due and payable.

Item 7 – Types of Clients
We provide portfolio management services to individuals, foundations, trusts, estates, 401-(k) plans and IRAs,
charitable organizations, and investment clubs and partnerships.
We prefer accounts containing at least $1,000,000 in assets; however, we will occasionally accept smaller
accounts.