SECURITIES AND EXCHANGE COMMISSION
                              WASHINGTON, DC 20549
   
                                     10-KSB/A
    
                 ANNUAL REPORT PURSUANT TO SECTION 13 OR 15 (D)
                     OF THE SECURITIES EXCHANGE ACT OF 1934
     For the fiscal year ended December 31, 1998 Commission File No. 0-11255


                            Heritage Bankshares, Inc.


         Virginia                                              54-1234322
(State or other jurisdiction of                        (IRS Employer corporation
 incorporation or organization)                          identification number)


          200 East Plume Street
            Norfolk, Virginia                                  23514
 (Address of principal executive offices)                    (Zip Code)


Registrant's telephone number, including area code:         (757) 523-2600



Securities registered pursuant to Section 12(b) of the Act:

Common Stock, $5 par Value         Securities not registered on a stock exchange
     Title of Each Class

Indicate  by a check  mark  whether  the  registrant  (1) has filed all  reports
required to be filed by Section 13 or 15 (d) of the  Securities  Exchange Act of
1934 during the  preceding  12 months,  and (2) has been  subject to such filing
requirements for the past 90 days.

                  Yes   X                            No

Indicate by check mark if disclosure of delinquent  filers  pursuant to item 405
of Regulation SB is not contained herein, and will not be contained, to the best
of  registrant's  knowledge,  in  definitive  proxy  or  information  statements
incorporated  by  reference  in Part III of the Form 10-KSB or any  amendment to
this Form 10-KSB. [X]

State the aggregate market value of the voting stock held by  non-affiliates  of
the registrant as of March 22, 1999: $10,763,888*

Indicate the number of shares outstanding of each of the registrant's classes of
common stock as of March 22, 1999:

         Common Stock,     $5 Par Value - 803,150
-----------------------

o    In  calculating  the aggregate  market value,  we have used the most recent
     sales price of Common Stock known to the Company, which is $16.00 per share
     and voting stock held by non-affiliates of the registrant at March 22, 1999
     of 672,743 shares.


<PAGE>
                               EXPLAINATORY NOTE


An error in an electronic data file effected the data presented on Page F-14,
Note 5 titled "Securities" in the notes to the Consolidated Financial Statements












<PAGE>

<TABLE>
NOTE 5 - SECURITIES

        Securities at December 31, 1998 and 1997 are as follows:

<CAPTION>
                                                              Gross                   Gross
                                    Amortized              Unrealized               Unrealized          Estimated
                                       Cost                   Gains                   Losses            Fair Value
                                    ---------              ----------               ----------          ---------
<S>                                <C>                     <C>                      <C>                 <C>
December 31, 1998:
   Securities available for sale
     U.S. Treasury                 $ 5,999,454             $    83,666              $       -           $ 6,083,120
     U.S. government agencies        7,038,469                  51,222                    6,451           7,083,240
   
     Mortgage-backed securities        952,599                   8,528                    1,180             959,947
    
     States and political
        subdivisions                   193,643                     -                      1,859             191,784
                                   -----------             -----------              -----------         -----------

                                   $14,184,165             $   143,416              $     9,490         $14,318,091
                                   ===========             ===========              ===========         ===========


   Securities held to maturity:
     U.S. Treasury                 $ 1,742,557             $    28,856              $       -           $ 1,771,413
     U.S. government agencies        1,706,042                  18,671                      -             1,724,713
     States and political
        subdivisions                   821,361                  27,118                      -               848,479
     Other                             848,755                     -                        -               848,755
                                   -----------             -----------              -----------         -----------

                                   $ 5,118,715             $    74,645              $       -           $ 5,193,360
                                   ===========             ===========              ===========         ===========

December 31, 1997:
   Securities available for sale
     U.S. Treasury                 $ 9,997,043             $    50,198              $       121         $10,047,120
     U.S. government agencies        4,817,324                  25,776                    2,359           4,840,741
     Mortgage-backed securities        829,433                  13,082                      791             841,724
                                   -----------             -----------              -----------         -----------

                                   $15,643,800             $    89,056              $     3,271         $15,729,585
                                   ===========             ===========              ===========         ===========

   Securities held to maturity:
     U.S. Treasury                 $ 2,233,944             $    17,934              $       -           $ 2,251,878
     U.S. government agencies        2,702,120                  14,178                      554           2,715,744
     Mortgage-backed securities        455,649                     -                      1,327             454,322
     States and political
        subdivisions                   827,582                  15,457                      -               843,039
     Other                             646,300                     -                        -               646,300
                                   -----------             -----------              -----------         -----------

                                   $ 6,865,595             $    47,569              $     1,881         $ 6,911,283
                                   ===========             ===========              ===========         ===========
</TABLE>

         Other  securities  include  restricted   investments  of  $846,300  and
$646,300 at December 31, 1998 and 1997,  respectively.  These  securities do not
have a readily  determinable fair value and lack a market.  Therefore,  they are
carried at cost and periodically evaluated for impairment.


                         (Notes continued on next page)

                                      F-14
<PAGE>

                                   SIGNATURES

         Pursuant to the  requirements of Section 13 or 15 (d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this Report to be signed on
its behalf by the undersigned, thereunto duly authorized.

                                    Heritage Bankshares, Inc.
                                         (Registrant)

Date:  March 31, 1999               by /s/ Robert J. Keogh
                                      -----------------------------------------
                                         Robert J. Keogh, President and Chief
                                         Executive Officer

                                    by /s/ Peter M. Meredith, Jr.*
                                      -----------------------------------------
                                         Peter M. Meredith, Jr., Chairman of the
                                         Board of Directors


                                       31
<PAGE>


         Pursuant to the  requirements  of the Securities  Exchange Act of 1934,
this  report has been  signed  below by the  following  persons on behalf of the
Registrant and in the capacities indicated on March 31, 1999.

SIGNATURES

/s/ Peter M. Meredith, Jr.*
-------------------------------------
Peter M. Meredith, Jr.
Chairman of the Board of Directors

/s/ Robert J. Keogh
-------------------------------------
Robert J. Keogh
President and Chief Executive Officer & Director

/s/ Henry U. Harris, III*
-------------------------------------
Henry U. Harris, III
Vice-Chairman of the Board of Directors

/s/ Stephen A. Johnsen*
-------------------------------------
Stephen A. Johnsen
Secretary of the Board of Directors

/s/ Lisa F. Chandler*
--------------------------------------
Lisa F. Chandler
Director

/s/ James A. Cummings*
-------------------------------------
James A. Cummings
Director

/s/ F. Dudley Fulton*
-------------------------------------
F. Dudley Fulton
Director

/s/ Gerald L. Parks*
-------------------------------------
Gerald L. Parks
Director

/s/ Ross C. Reeves*
-------------------------------------
Ross C. Reeves
Director

/s/ Harvey W. Roberts, III*
-------------------------------------
Harvey W. Roberts, III
Director


*by: /s/ Robert J. Keogh
    ----------------------------------
    Robert J. Keogh, attorney-in-fact