HERITAGE FINANCIAL CORP /WA/

(6)Goodwill and Other Intangible Assets

(a) Goodwill

Goodwill represents the excess of the total acquisition price paid over the fair value of the assets acquired, net of fair value of liabilities assumed in connection with mergers and acquisitions. During the three months ended March 31, 2026, the Company recorded $38.1 million of goodwill associated with the acquisition of Olympic. Additional information on the acquisition and purchase price allocations is provided in Note 2 - Business Combinations. There wereno additions to goodwill during the three months ended March 31, 2025.

The following table presents the changes in the carrying amount of goodwill during the three months ended March 31, 2026:

Management analyzes the Company's goodwill on an annual basis on December 31 and between annual tests in certain circumstances such as material adverse changes in legal, business, regulatory and economic factors. An impairment loss is recorded to the extent the carrying amount of goodwill exceeds its implied fair value. The Company performed an annual impairment assessment as of December 31, 2025 and concluded that there wasno impairment as of that date. Even though there was no goodwill impairment at December 31, 2025, changes in the economic environment, operations of the reporting unit or other adverse events could result in future impairment charges which could have a material impact on the Company's operating results.

(b) Other Intangible Assets

Other intangible assets represent core deposit intangibles acquired in business combinations with estimated useful lives often years. During the three months ended March 31, 2026, the Company recorded $50.3 million of core deposit intangibles associated with the acquisition of Olympic. There wereno additions to other intangible assets during the three months ended March 31, 2025. Fully amortized core deposit intangibles of $12.1 million were removed from the gross carrying amount and accumulated amortization during the three months ended March 31, 2026.

The following table summarizes other intangible assets at the dates indicated:

The following table presents the estimated aggregate amortization of other intangible assets at the dates indicated: