On October 28, 2009, the Board of Directors of Heritage Bankshares Inc. declared a quarterly dividend on the Company’s common stock in the amount of $0.06 per share, payable on November 20, 2009 to shareholders of record on November 9, 2009.

Heritage Bankshares Inc. announced unaudited consolidated financial results for the third quarter and first nine months ended September 30, 2009. For the quarter, net income was $206,000 compared to net income of $385,000 for the third quarter of 2008. After the effect of dividends on preferred stock, net income available to common stockholders was $196,000, or $0.09 per diluted share compared to net income available to common stockholders, of $385,000, or $0.17 per diluted share, for the third quarter of 2008. Net income for the third quarter of 2008 included an after tax gain of $339,000 on the sale of investment securities in the third quarter of 2008. The company took the unusual step of selling a large number of securities in the third quarter of 2008 to avoid any potential impairment of these securities from the turbulence in the financial markets existing at that time. There were no gains on the sale of investment securities in the third quarter of 2009. The company's pretax income was $337,000 for the third quarter of 2009, compared to pretax income of $600,000 for the third quarter of 2008. The company reported net interest income of $2.263 million compared to the net interest income of $1.964 million for the same period a year ago. Compared to the third quarter of 2008, net interest income increased by $299,000, provision for loan losses decreased by $3,000, noninterest income decreased by $527,000 and noninterest expense increased by $38,000. The company's net interest income before provision for loan losses increased by $299,000 in the third quarter of 2009 compared to the third quarter of 2008. This increase was primarily attributable to an increase of $37.2 million in the average balance of interest-earning assets, which more than offset an increase of $17.6 million in average interest-bearing liabilities, and to an increase in net interest spread from 3.06% to 3.25%. Annualized return on average assets was 0.30% compared to 0.67% for the same period a year ago. Annualized return on average equity was 2.86% compared to 6.01% for the same period a year ago. Book value per share was $11.62 compared to $11.01 for the same period a year ago. The company reported total interest income of $2.792 million compared to the total interest income of $2.833 million for the same period a year ago. For the nine months, net income was $588,000 compared to net income of $595,000 for the same period in 2008. After the effect of dividends on preferred stock, net income available to common stockholders for the first nine months of 2009 was $578,000, or $0.25 per diluted share, compared to net income available to common stockholders, of $595,000, or $0.26 per diluted share for the same period in 2008. The company's pretax income was $884,000 for the first nine months of 2009, compared to pretax income of $939,000 for the first nine months of 2008, a decrease of $55,000. The company reported net interest income of $6.701 million compared to the net interest income of $5.877 million for the same period a year ago. Compared to the first nine months of 2008, net interest income increased by $824,000, provision for loan losses increased by $73,000, noninterest income decreased by $636,000 and noninterest expense increased by $170,000. The company's net interest income before provision for loan losses increased by $824,000 for the first nine months of 2009 compared to the first nine months of 2008. This increase was primarily attributable to an increase of $34.6 million in the average balance of interest-earning assets, which more than offset an increase of $21.1 million in average interest-bearing liabilities, and to an increase in net interest spread from 2.97% to 3.25%. Annualized return on average assets was 0.30% compared to 0.35% for the same period a year ago. Annualized return on average equity was 2.93% compared to 3.11% for the same period a year ago. Book value per share was $11.62 compared to $11.01 for the same period a year ago. The company reported total interest income of $8.472 million compared to the total interest income of $8.824 million for the same period a year ago.

Heritage Bankshares Inc. announced that effective September 23, 2009, the Bylaws of the Company were amended to accommodate the Automatic Directorship Increase. In addition, the Bylaws previously stipulated a fixed number of fifteen (15) members of the Board of Directors; under the Bylaw Amendment, the number of directors will be fixed by resolution of the Board from time to time, provided that the number of directors will not be less than fifteen (15) or more than twenty-one (21). On September 24, 2009, the Company filed with the State Corporation Commission of the Commonwealth of Virginia certain Articles of Amendment to its Articles of Incorporation establishing the terms of the Preferred Shares.