reaching out - Hawk Associates

eaching out
Fidelity Bankshares, Inc.
2005 Annual Report

At Fidelity Bankshares, Inc. and Fidelity Federal Bank & Trust, we’re more than a
leading financial institution. We’re part of the very fabric of our community. Our
customers find that, wherever they are, we’re right there with them, reaching out
and helping our region grow and thrive.
In 2005, we were recognized not only for financial leadership, but also for the
role we play in the community we serve. Bank Director magazine ranked Fidelity
Bankshares, Inc. among the nation’s top-performing FDIC-insured financial institutions
for 2005. The American Jewish Congress honored our bank with the Distinguished
Civic Achievement Award for 2005. At Fidelity, we’re proud of our accomplishments
on both of these fronts. That’s what makes us a leading community bank.
“ I want to personally thank Fidelity Federal Bank & Trust for sponsoring
the Historical Society of Palm Beach County’s new history and civics
program for our seventh grade students. The program is full of fascinating
stories and photos, with challenging activities and projects. But its true
value lies in the fact that it sparks student interest in the history of Palm
Beach County. From Civil Rights, Native Americans and colorful characters
such as “Alligator Joe” and the “Barefoot Mailman,” to historical references
to Henry Flagler and the Yamato Colony, the history and civics program has
inspired my students to celebrate the past while they get ready for the future.”
Joseph Cominio, Social Studies Instructional Leader
H. L. Watkins Middle School
Palm Beach Gardens, Florida

and making a difference

dear stockholder,
Our 53rd year of operations in South Florida was most successful
for our bank and our stockholders. Despite a fall hurricane that
briefly disrupted operations, we had another record year as we
further strengthened our community banking franchise in what is
widely acknowledged as one of America’s leading banking markets.
In April, we completed the acquisition of First Community Bank
with five offices and during the year opened one new office. Two
additional offices were scheduled to open in 2005, but were delayed
and opened in January 2006. We now have 50 branch locations
and two loan production offices in five counties. Fidelity Federal
Bank & Trust is the sixth largest Florida-based financial institution
and the largest financial institution in Palm Beach County. With
a 9% deposit market share that continues to grow, we focus on
building our base of satisfied customers and expanding our footprint
of operations.
Net income in 2005 increased by 40% to $32.1 million, or
$1.28 diluted earnings per share, compared with $22.9 million, or
$1.01 diluted earnings per share, in 2004. Since 2001, net income
has grown at a compound annual rate of 42.0% while the compound
annual growth rate (CAGR) of core deposits has been 38.9%. Core
deposits, which exclude all certificates of deposit, were 74.5% of
total deposits at year-end compared with 77.5% at the end of 2004.
Our assets reached $4.08 billion and deposits rose to $3.54 billion.
Average net interest margin for the year was 3.74% compared to
3.36% in 2004.
Excellent returns to stockholders date back to 1994, when we
first went public. The compounded annual return for stockholders
since 1994 is 28.2% compared with 10.5% for the S&P 500 Index
during the same period.
The bank continued to diversify its loan portfolio. Commercial
mortgages were 36% of our total loans at year-end while one-to-four
families, traditionally our largest loan category, represented 35% of
our total loan portfolio. This reflected the substantial transformation
of our bank, from its traditional roots as a thrift engaged primarily
in residential mortgage lending to a full-service community bank
that also includes trust and insurance operations. Over half of our
new loans during the year were commercial loans, an increasingly
significant part of our business. We have maintained pristine asset
quality even as we have diversified our loan portfolio.
In the fourth quarter, Fidelity Bankshares benefited from increased
exposure by being added to the S&P SmallCap 600 Index. As a result,
several new analysts initiated coverage. Also during the fourth quarter,
we were ranked by Bank Director magazine in the top 100 publicly
traded FDIC-insured institutions in the United States.
In late October, Hurricane Wilma slammed into our area of
operations and damaged thousands of homes and businesses. This
was the second consecutive year we were hit by hurricanes, but it
demonstrated once again the resiliency of our community and the
dedication and competency of our employees, who rallied to get our
branches opened quickly to take care of the needs of our customers.
We were pleased to welcome William H. Sned, Jr. to our board
of directors. Bill has practiced administrative, real estate, corporate,
zoning and governmental law in Palm Beach County since 1971

Vince A. Elhilow, Chairman and Chief Executive Officer
and has represented lenders in all types of real estate transactions.
He is an outstanding addition to our board and we look forward
to working with him.
Our future continues to look bright for many reasons. Palm
Beach County, where our operations are centered and where
our brand identity is strong, is one of the most robust growth
areas in America and one of the finest banking markets
anywhere. The county ranks fourth nationwide in new jobs
created between July 2002 and July 2004 and is projected to be
America’s sixth best market for job growth through 2007.
Additionally, West Palm Beach has been ranked as the fifth best
metropolitan area in the nation for entrepreneurs.
The theme of this annual report is Reaching Out. In a multitude
of ways, we are involved with our communities—supporting our
schools and young people, rebuilding after hurricanes, and
providing various kinds of assistance to community charities and
related activities. Our business strategy also involves reaching out.
Every day, we are working hard to assist our customers, support
economic growth and expand our franchise. As this report was
being completed, we announced a major expansion into Broward
County with the establishment of the Fidelity Federal Center in
the heart of the financial district in Ft. Lauderdale. We believe
Broward County will become an increasingly important market
for us in the years ahead.
Our goal is to continue annual growth of 15% to 20% in loans
and deposits, which will require opening three to four new offices
a year. We seek to increase our return on equity to a minimum of
15% and reduce our efficiency ratio to 60% or less. Fee income
should continue to increase through the growth of our trust and
insurance services as well as our traditional banking operations.
Our ability to continue building stockholder and franchise
value is possible not only because of our great location, but also
because of an outstanding team of managers and employees, who
demonstrate their commitment and dedication to our company
every day. On behalf of all of us, I extend my warm thanks to
them and to our wonderful stockholders, who have supported
our efforts throughout the years.
Vince A. Elhilow, Chairman and Chief Executive Officer

$4.1 billion
in assets
6th largest
Florida-based financial institution
$3.5 billion
of deposits

3rd largest
Florida-based thrift
50 full-service
branch locations
$3.0 billion
of net loans
a trusted partner in
our vibrant area
The Roosevelt Bridge, which crosses the St. Lucie River in downtown Stuart, is a symbol of
the tremendous growth our entire region is experiencing. As an example, the population
of Port St. Lucie has risen 33% since 2000 and, in June 2005, the Census Bureau named it
the fastest growing large city in the United States. In addition to Broward and Palm Beach
Counties, Fidelity Federal has been serving the three-county area known as the Treasure
Coast for more than 25 years. With five branches in the Treasure Coast, including two Port
St. Lucie branches, we play a vital role in supporting this growing community.

“ Initially, we were very surprised, happily surprised. We came to Ruben Ramirez without an existing relationship and
were treated like old friends. In Ruben, we found a person that took the time to help us and inform us of our mortgage
options in our own language. Ruben deserves much recognition for his superb customer service. Ruben handled our
mortgage efficiently and in a timely manner, as if we were his only customers—and his friends. Thank you.”
Mr. and Mrs. Redelio Espinoza
West Palm Beach, Florida
helping you realize your
dreams, in any language

Palm Beach and Broward Counties have a rich Hispanic culture and large Spanish-speaking populations. Our Hispanic
Initiative, launched in 2003, has helped us better serve this important market segment. Three years ago, we looked closely
at each of our branches to determine the customer mix, and increased the number of bilingual associates where they were
needed most. At select branches, we now offer a full range of services in both Spanish and English, including financial
counseling, and make all relevant paperwork available in Spanish.
Fidelity Federal has put leadership teams in place at every level of the organization to support this important
initiative, including a Hispanic Advisory Board made up of community leaders from throughout our market area and a
Hispanic Committee, made up of Fidelity Federal department heads. Their efforts to identify and meet the needs of our
Hispanic customers are supported by a subcommittee of associates. Following on the success of our Hispanic Initiative,
we’ve established community advisory boards in all eight of the regions we serve—advisory boards that reflect the diversity
of each region. It’s just one more way of reaching out to our community of customers.

uilding relationships
Not far from this lighthouse in Jupiter, Florida, is the site for a new state-of-the-art
biomedical development, part of the Scripps Research Institute, and the epicenter of
another expected surge in regional development. In the summer of 2008, Scripps
researchers and staff, located in temporary research facilities at Florida Atlantic University,
are expected to move to a new 350,000-square-foot, three-building complex in Jupiter.
The facility promises to spark added growth—as many as 40 companies have grown
out of similar Scripps research and technology developments. The Jupiter site was
announced in February 2006.
Lending a hand to rebuild

Originally built in 1860, this Jupiter lighthouse is the oldest existing structure in Palm Beach
County. Fidelity Federal is the county’s oldest bank, headquartered here since 1952. As the
region has grown, so has Fidelity—because we’ve taken a proactive approach and maintained close
ties to the community. In 2005, Fidelity Federal deposits of $3.5 billion were up 26% year over year;
eight branches passed the $100 million deposit mark and, in January 2006, we celebrated the
opening of our 50th branch, in the city of Coconut Creek.
Strong deposit growth is due in part to an aggressive focus on same-store sales aimed at
building business with our existing customers and attracting new relationships, as well as providing
consistent customer service. But it’s also related to high levels of community engagement.
Management and associates at Fidelity branches are encouraged to reach out to their respective
communities. In 2005, that meant providing significant support to area residents in the wake
of Hurricane Wilma, which devastated some of our service areas. Fidelity made an extra effort
to open affected branches immediately, providing access to a ready supply of cash. And,
in particularly devastated areas of western Palm Beach County, local branch associates
organized the delivery of meals, care packages and toys to area residents in the days, weeks
and months following the October 24 disaster.

supporting businesses,
large and small
Palm Beach County and the surrounding region have experienced phenomenal growth over the past two decades, and the
area continues to excel in such measures as job creation, economic growth and business success. One of the big draws is
the weather; the region’s mean temperature is 76 degrees. As more and more baby boomers reach retirement age, the area’s
weather is expected to attract a new generation of active retirees. Fidelity Federal is providing the residential loans for these
new residents, as well as the commercial and retail banking services for the businesses that support this growing population.
In 2005, Fidelity Federal made a record $1.6 billion in new loans booked. In 2005, the bank’s commercial deposits increased
31.08% and overall commercial loan production was up 18.11% over the prior year. We established a Small Business Lending
Unit three years ago to improve services for our small business customers and attract new ones. Since then, small business
loan originations have risen from $4.1 million in 2003 to $35.6 million in 2005. Today, each of our retail branches is covered by
a dedicated small business lending officer, enabling us to turn around loan requests within 72 hours. The bank continues
to excel at attracting commercial customers. On the retail banking side, business checking account deposits were up 28.84%
in 2005. By providing a full range of commercial services at the branch level, we can reach out to local businesses and provide
them with easy access to the services they need. That’s the foundation of our success.

“ It is paramount today, in making an acquisition or creating a
business startup, to develop a strong banking partnership. A
mutual understanding of the implementation of a solid business
plan is essential to achieving our goals. We couldn’t have realized
those goals without the personal touch and products offered by
Fidelity Federal Bank & Trust.”
Mr. John Krizka, Blowing Rocks Marina
Jupiter, Florida

as our community
expands, so do we

Projected through 2007
*
Ranked 6th
in median household income
1.6 million
residents and growing
6th nationwide
in new job creation *
Construction on One Ocean Boulevard, an 81-unit mid-rise condominium in
Deerfield Beach, was completed this year and 100% of the units were sold by
year-end. Fidelity Federal provided $21 million in acquisition, development and
construction financing for the project. Given the level of development activity in
the region, the bank’s commercial loan division does a high volume of business in
commercial real estate lending.

Corporate Offices
Branch Offices
Treasure Coast Region:
Jensen Beach
Kanner
Martin Square
Port St. Lucie
Prima Vista
Northern Region:
Northlake
Singer Island
Tequesta
North Palm Beach
Palm Beach Gardens
Jupiter Farms
Jupiter
Abacoa
Military @ Frederick Small
Devonshire
Western Region:
Royal Palm Beach Acreage
Wellington Country Plaza
Belle Glade
Pahokee
La Mancha
Loxahatchee
Wellington
Royal Palm
Wycliffe
Central Region:
45th Street
Forest Hill
West Forest Hil
Palm Beach
Century Corners
Datura
Bear Lakes
Okeechobee @ 441
Belvedere In-Store
South-Central Region:
West Lake Worth
West Boynton
West Hypoluxo
Downtown Lake Worth
Palm Springs
Boynton @ Congress
Boynton Wal-Mart
Downtown Delray
Lake Ida @ Jog
Southern Region:
Delray
West Linton
Boca East
Glades @ Lyons
Clint Moore @ 441
Southeast Mizner
Coconut Creek
Parkland
Downtown Fort Lauderdale*
Future Branches
Yamato
Powerline & SW 18th
Hypoluxo @ Lyons
Belvedere and Parker
Gatlin & Import (Wal-Mart)
US1 & Walton Road
Highway 60 @ King’s Highway
Loan Production Offices
Vero LPO
Fort Lauderdale LPO
Fidelity Insurance
Juno Beach
West Palm Beach
Lake Worth
Opening March 2006
*

Advisory Boards
Treasure Coast Advisory Board
Ajay M. Bhatt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Raja Food DBA Rightway
C. Norris Tilton . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attorney
Chuck Clark . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Clark and Associates
David Chesnut . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . David J. Chesnut, P.A.
Dr. David Girlinghouse, DDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Dentist
Dr. Richard Penick . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Retired Physician
Drew Poston . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . SLC Commercial
Fran Wilson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Wilson Builders
J. Michael Stetson . . . . . . . . . . . . . . . . . . . . . . .Stetson Realty & Investments
Michael Maliszewski . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attorney
Owen Schwaderer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Retired Investor
Robert Stevenson . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .M & M Petroleum
Rosanna Gonzalez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gonzalez Imports
Warren Griffin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Griffin Electrical Services
Joseph Mazzochi, Sr. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Stuart Fine Foods
St. Lucie County Advisory Board
Brett Shann . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Shann’s Tax Service, Inc.
Donald Santos . . . . . . . . . . . . . . . . . . . . . . . . . Santos Construction Company
Louis “Lou” P. Benson . . . . . . . . . . . . . . . . . . . . . . . . Treasure Coast Hospice
Mary Jean “MJ” Navaretta . . . . . . . . . . . . . . . . . . . . . .City of Port St. Lucie
Nancy B. Dalton . . . . . . . . . . . . . . . . . .Treasure Coast Builders Association
Rod Kennedy . . . . . . . . . . . . . . . . Engineering Design & Construction, Inc.
Steve Ball . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Land Planning Systems
Sgt. Troy A. Church . . . . . . . . . . . .St. Lucie County Sheriff’s Department
Northern Palm Beach County Advisory Board
Babs Henderson . . . . . . . . . . . . . .First American Title Insurance Company
Don Montano . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Jupiter Fitness Center
Ed Sasso . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Retired Business Owner
E. Lloyd Ecclestone, III . . . . . . . . . . . . . . . . . . . Ecclestone Signature Homes
George F. “Chip” Lubeck III . . . . . . . . . . . . . . . . . . . . . . Lubeck Real Estate
Jack B. Owen, Jr., P.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attorney
JoAnn Munro . . . . . . . . . . . . . . . . . . . . . . . . . .Southeast Interior Designs, Inc.
John Fowlds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tri-City Woodworks, Inc.
Joyce L. Miller . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Royal Key Realty, Inc.
Lori Bonino . . . . . . . . . . . . . . . . . . . . . . . . . . . .Lighthouse Elementary School
Patrick M. Gordon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attorney
Peter L. Pimentel . . . . . . . . . . . . . . . . . . . . . . . .Special District Services, Inc.
Robert B. “Bob” Martin . . . . . . . . . . . . . . . . . . . . . . . Decorators Unlimited
Robert E. Rabenecker . . . . . . . . . . . . . . . . . . . . . . . . . . Roger Dean Stadium
Thomas R. Mills . . . . . . . . . . . . . . . . . . . . . . . . Mayor of Palm Beach Shores
Troy Maschmeyer . . . . . . . . . . Maschmeyer Concrete Company of Florida
Waldemar “Wally” Schickedanz . . . . . . . . . . .Schickedanz Capital Group
South Central Palm Beach County Advisory Board
Benjamin P. Shenkman, P.A. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attorney
Arleen Dennison . . . . . . . . . . . . . . . . . . . . . Boynton Beach Cultural Center
aka Schoolhouse Children’s Museum
Dr. Dennis P. Gallon . . . . . . . . . . . . . . . . Palm Beach Community College
Dr. Ruth Berman . . . . . . . . . . . . . . . . . . . Arra-Berman Chiropractic Center
James Boyd . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Baner Realty, Inc.
John Math . . . . . . . . . . . . . . . . . . . . . . . . . . . Associated Property Management
Kanti Patel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . K Liquors
Paul Himber . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Paul Himber, Inc.
Rebecca L. Morse . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Village of Palm Springs
Richard L. Kennedy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Wayne Akers Ford
Richard Pasley . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .South Palm Realty, Inc.
Robert Leifer . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Perretti & Leifer
Stacey L. Accardi, CPA . . . . . . . . . . . . . . . . . . . . . . . . .Accardistandlee, LLC
Ted Ciaccia . . . . . . . . . . . . . . . . . Commercial Property Realty Advisors LLC
Southern Palm Beach County Advisory Board
Anthony Pugliese III . . . . . . . . . . . . . . . . . . . . . . . . . The Pugliese Company
Anthony Reitano, CPA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Accountant
Barry Kaye . . . . . . . . . . . . . . . . . . Barry Kaye Management Company, LLC
Barry Siegel, Esq. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Covert & Siegel
Bonnie Rosenthal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Realty Associates
Dr. Sherrie Raz . . . . . . . . . . . . . . . . . . . . . . . . . . . Florida Atlantic University
Jimmy Weatherspoon . . . . . . . . . . . . . . . The Urban League of South PBC
John Thomas Dolvin, DDS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Dentist
Joseph Moore . . . . . . . . . . . . . . . . . . . . . . . . . . . Gwynn, Moore & Associates
Marc Solomon, Esq. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attorney
Marty Yudell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Boca One Development
Paul Slattery . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Slattery & Associates
Robert “Bob” Dockerty . . . . . . . . . . . . . . . . . . . . . . . Dockerty Romer & Co.
Seth Cohen, Esq. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cohen & Fogel, LLC
Wayne Hansen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Honeywell Corp.

Western Palm Beach County Advisory Board
Bob Richardson . . . . . . . . . . . . . . . . . . . . . . . . . . . . PBG Management Corp.
Carmine Priore III . . . . . . . . . . . . . . . . . . . . . . . . . . . . Florida Power & Light
Chris Heine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .C H Consulting, Inc.
Darell Bowen . . . . . . . . . . . . . . . . . . . . . . . Creative Marketing Products, Inc.
Dr. Carmine A. Priore . . . . . . . . . . . . . . . . . . . . . . . . Dr. Carmine A. Priore
John P. George . . . . . . . . . . . . . . . . . . . . . Majestic Custom & Realty Homes
Juan C. Cocuy . . . . . . . . . . . .JJ Muggs Grills & Cocuy, Burns & Co., CPA
Marc Unterhalter . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Lion Country Safari
Michael F. Sexton . . . . . . . . . . . . . . . . . . Sexton Engineering Associates, Inc.
Michael Heine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Electrical Express, Inc.
Robert A. D’Angio, Jr. . . . . . . . . . . . . . . . . . . . . . . .Robert D’Angio, Jr., P.A.
Thomas M. Wenham . . . . . . . . . . . . . . . . . . . . . . . . . . . Village of Wellington
Vickie Chouris . . . . . . .South Florida Fair & PB County Expositions, Inc.
Wallace D. Sanger . . . . . . . . . . . . . . . . . . . . . . . . . Royal Wall/Royal Concrete
Concepts/Royal Professional Builders
Downtown West Palm Beach Advisory Board
Anita Mitchell . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .The Mitchell Group
Barbara M. Wakem . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Illustrated Properties/
Atlantic Filter Corporation
C. Wayne Johnson . . . . . . . . . . . . . Johnson, Levinson, Ragan, Davila, Inc.
Collene W. Walter . . . . . . . . . . . . . . . . . . . . . . . . . . Kilday & Associates, Inc.
Daniel N. Miteff . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Miteff and Associates
Donald J. Freeman, Esq. . . . . . . . . . . . . . . . . . . Freeman, Maynor & Jones
Dr. Brian Campbell . . . . . . . . . . . . . Dr. Brian Campbell Sports Medicine
George S. Kairalla . . . . . . . . . . . . . . . . . . . . . . .Datura Auto Sales & Rentals
Gigi Tylander . . . . . . . . . . . . . . . . . . . . . . Tylander’s Hurricane Office Supply
Ian F. Brown . . . . . . . . . . . . . . . . . . . . . . . . . .Brown Moving & Storage, Inc.
J. Scott Benyon . . . . . . . . . . . . . . . . . . . . . . . . .Rinker Materials Corporation
Kathy Foster . . . . . . . . . . . . . .Junior Achievement of the Palm Beaches, Inc.
Louis M. Cohen . . . . . . . . . . . . . . . . . . . . . . . . . . . Caler, Donten, & Levine
Mark Tribble . . . . . . . . . . . . . . . . . . . . . .Lotspeich Company of Florida, Inc.
Martin Murphy, Jr. . . . . . . . . . . . . . . The Murphy Construction Company
William M.B. Fleming, Jr. . . . . . . . . . . . . Palm Beach Atlantic University
Patrick C. Koenig . . . . . . . . . . . . . . . . . . . . . . Flagler Realty & Development
Roberto Balbis . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Ardaman & Associates
Sam L. Ellington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Acordia
Stan Apparicio, CFO . . . . . . . . . . . . . . . . . . . Center of Child Development
Thomas Balling . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Seacrest Services
Thomas J. Blash . . . . . . . . . . . . South Florida Janitorial and Pool Supplies
Tom Twyford . . . . . . . . . . . . . . . . . . . . . . . . . .West Palm Beach Fishing Club
Glades Advisory Board
Ann Holt, President . . . . . . . . Western Palm Beach County Farm Bureau
Beverly J. Robinson, Ph.D. . . . . . . . . . . . . . . . . . . . . . Office of the Provost,
Palm Beach Community College
Donald Moss . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Moss Towing
Eric Hopkins . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Hundley Farms, Inc.
Father John Mericantante . . . . . . .St. Mary’s Catholic Church in Pahokee
Gilberto Alvarez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Gilbert’s Jewelers
Houston L. Tate, City Manager . . . . . . . . . . . . . . . . . . . City of Belle Glade
Hugh H. Branch, Sr. . . . . . . . . .Hugh Branch, Inc./Glades Precooler, Inc.
James T. Houston . . . . . . . . . . . . . . . . . Houston Realty & Investment, Inc.
John “Buddy” McKinstry . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .JEM Farms
J. P. Sasser . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Cavinees Paint & Body Shop
Julio Sanchez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tru-Flo Corporation
Mark Sodders . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Valentine Aquatics
Richard “Dick” P. Korbly, Jr. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Dupont
Steven B. Royal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . The Royal Companies
Tommy Holt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Twin H Farms
Hispanic Advisory Council
Angel M. Gonzalez . . . . . . . . . . . . . . . . . . . Amerivest Business Brokers, Inc.
Antonio J. Grau, Jr. . . . . . . . . . . . . . . . . . . . . . . . . . . . .Grau & Company, PA
Carlos M. Ortiz . . . . . . . . . . . . . . . . . . . . . . . . . . . . El Bodegon Supermarkets
Dalia C. Melendez . . . . . . . . . . . . . . . . . . . . . .Dalia Accounting Service Inc.
Dr. Alberto Marante . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Palms West Hospital
Evelyn Parkes, CPA . . . . . . . . . . . . . . . . . . . . . . . . . Evelyn Parkes CPA, LLC
Frank Rodriguez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Corporate Creations
Gaston Cantens . . . . . . . . . . . . . . . . . . . . . . . . .Florida Crystals Corporation
Jorge Avellana . . . . . . . . . . . . . . . . . . . . Hispanic Human Resources Council
Julian Lago . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Plastridge Agency, Inc.
Julio A. Fanjul . . . . . . . . . . . . . . . . . . . . . .South Florida Water Management
Julio Fuentes . . . . . . . . . . . Florida State Hispanic Chamber of Commerce
Laura R. H. Corry . . . . . . . . . . South Florida Water Management District
Luciano Martinez (1948–2003)—Charter Member
Hispanic Human Resources Council
Mabel Datena . . . . . . . . . . . Hispanic Alliance of Palm Beach County, Inc.
Manuel Bornia . . . . . . . . . . . . . . . . The Cultural Trust of the Palm Beaches
Mari Chumaceiro . . . . . . . . . . . . . . . . . . . . . Hospice & Homecare by the Sea
Marilyn I. Melendez . . . . . . . . . . . . . . . . . . . .Dalia Accounting Service Inc.
Rafael Perez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Havana Restaurant
Ramon Vilarino . . . . . . . . . . . . . . . . . . . . . . . . . . . . Don Ramon’s Restaurants
Rick Gonzalez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . REG Architects
Silvia C. Garcia . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Insurance For You, Inc.
Susy Diaz . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . American Cancer Society
Tulio G. Suarez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Devore & Devore, P.A.
Valentin Rodriguez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Attorney at Law
Xiomara Ordonez . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mirsky Realty Group

Ten-Year Financial Data (unaudited)
For the years ending December 31 (in thousands) 1996 1997 1998 1999 2000
Interest income $ 60,240 $ 72,272 $ 98,320 $ 110,925 $ 132,580
Interest expense 32,131 41,606 64,992 72,255 85,671
Net interest income 28,109 30,666 33,328 38,670 46,909
Net income 3,550 6,418 7,412 9,114 8,521
Per common share
Net Income (1) :
Basic EPS $ 0.15 $ 0.27 $ 0.31 $ 0.39 $ 0.36
Diluted EPS 0.15 0.26 0.31 0.39 0.36
Book value (1) 3.34 3.55 3.45 3.36 3.69
Stock price (1) :
High 5.11 9.11 9.76 6.41 5.73
Low 3.24 4.83 5.17 3.90 3.69
Close 4.90 8.97 6.27 3.90 5.41
Average for the year (in thousands)
Assets $824,025 $ 995,528 $1,424,178 $1,663,240 $1,849,957
Loans receivable, net 605,507 736,463 917,647 1,067,107 1,272,362
Mortgage-backed securities 135,973 163,250 357,448 409,653 349,498
Investments 35,530 44,146 70,674 86,181 100,667
Deposits 636,297 768,892 993,343 1,221,590 1,400,130
Borrowed funds 85,608 122,490 315,907 333,439 336,065
Stockholders’ equity 81,339 84,217 88,974 82,567 85,461
Selected performance ratios
Return on average assets 0.43% 0.64% 0.52% 0.55% 0.46%
Return on average equity 4.36% 7.62% 8.33% 11.04% 9.97%
Interest rate spread on average assets for the period 3.30% 3.00% 2.35% 2.45% 2.77%
Stockholders’ equity as a percentage of assets 9.36% 7.16% 5.42% 4.85% 4.77%
Efficiency ratio 80.97% 68.12% 70.65% 70.46% 75.07%
Number of branch offices 20 21 22 32 35
Ratio of non-performing assets to total assets 0.39% 0.34% 0.31% 0.30% 0.26%
Ratio of net charge-offs during the period
to average loans outstanding during the period 0.03% 0.04% 0.01% 0.01% 0.00%
Allowance for loan losses to non-performing
loans at end of period 68.37% 102.04% 82.55% 83.08% 98.41%
Year-end (in thousands)
Total assets $873,562 $1,220,267 $1,566,927 $1,718,933 $1,932,434
Investments 41,740 61,720 66,557 61,478 105,266
Cash and amounts due from depository institutions 15,293 22,136 27,951 41,736 43,986
Loans receivable, net 661,700 861,257 977,166 1,164,421 1,361,232
Mortgage-backed and corporate debt securities 123,599 234,132 433,751 375,171 322,223
Deposits 694,718 872,340 1,120,746 1,321,510 1,497,818
Borrowed funds 83,621 242,871 338,871 290,479 310,005
Stockholders’ equity 81,723 87,387 84,999 83,304 91,651
(1) All per-share data retroactively adjusted to reflect 3-for-2 stock split disbursed in the form of a stock dividend to shareholders of record on December 31, 2004
and distributed on January 14, 2005, and second step conversion of Fidelity Bankshares, MHC completed in 2001.
Certain amounts in prior year have been reclassified to conform with the December 31, 2005 presentation.

2001 2002 2003 2004 2005
$ 138,480 $ 137,867 $ 143,683 $ 164,664 $ 206,551
81,422 61,768 57,164 59,864 76,211
57,058 76,099 86,519 104,800 130,340
7,880 16,798 17,921 22,897 32,082
$ 0.34 $ 0.75 $ 0.82 $ 1.04 $1.32
0.34 0.74 0.81 1.01 1.28
7.50 7.10 8.19 10.29 11.34
12.27 14.98 21.67 28.85 34.20
5.45 10.40 11.49 20.41 22.27
10.65 11.93 20.93 28.51 32.70
$2,057,145 $2,349,524 $2,798,378 $3,336,797 $3,762,083
1,561,569 1,745,639 2,037,993 2,424,354 2,723,586
298,550 193,510 399,898 466,035 645,458
140,053 229,660 174,896 227,328 118,141
1,534,114 1,752,316 2,235,207 2,665,929 3,132,413
328,840 372,000 335,832 400,498 294,572
144,324 177,009 176,477 199,273 270,217
20
32
35
38
40
41
43
48
21
22
96 05
$695
Branch Growth
(number of offices)
CDs
Money Market & Savings
Checking
$872
$1,121
$1,322
$1,498
$1,559
$1,898
$2,460
$2,815
$3,541
0.38% 0.71% 0.64% 0.69% 0.85%
5.46% 9.49% 10.15% 11.49% 11.87%
2.55% 3.45% 3.29% 3.53% 3.70%
8.31% 6.93% 6.05% 7.24% 6.98%
78.14% 67.45% 69.36% 68.24% 65.10%
38 40 41 43 48
0.24% 0.27% 0.37% 0.19% 0.22%
0.00% 0.03% 0.02% 0.01% 0.01%
136.67% 126.21% 99.12% 211.85% 220.13%
$2,136,935 $2,439,397 $3,048,222 $3,470,539 $4,082,611
152,446 166,286 169,850 123,637 104,817
52,944 66,178 76,090 108,327 150,657
1,581,227 1,935,999 2,191,696 2,556,700 3,036,710
237,671 145,139 471,228 529,640 598,834
1,559,436 1,898,341 2,460,101 2,814,670 3,540,874
355,342 326,537 358,970 350,560 200,085
177,612 169,087 184,509 251,283 284,768
96 05
$700
1–4 Family
Construction & Land
Commercial Mortgage
Commercial
Consumer
$916
Deposit Growth
(in millions)
$1,061
$1,271
$1,492
$1,780
$2,203
$2,580
$3,045
$3,625
96 05
Loan Portfolio Growth
(in millions)

Consolidated Statements of Operations
Year Ended December 31,
(in thousands, except share data) 2003 2004 2005
Interest income
Loans $128,230 $141,916 $171,959
Investment securities 1,236 3,219 2,008
Other investments 1,632 1,416 1,604
Mortgage-backed securities 12,585 18,113 30,980
Total interest income 143,683 164,664 206,551
Interest expense
Deposits 38,605 39,676 61,807
Advances from Federal Home Loan Bank and other borrowings 18,559 20,188 14,404
Total interest expense 57,164 59,864 76,211
Net interest income 86,519 104,800 130,340
Provision for loan losses 3,122 2,736 1,877
Net interest income after provision for loan losses 83,397 102,064 128,463
Other income
Service charges on deposit accounts 10,082 11,048 11,309
Fees for other banking services 6,912 8,126 9,381
Net gain on sale of loans 4,159 619 728
Net gain (loss) on sale of securities (2,364) 407 —
Miscellaneous 851 1,943 1,935
Total other income 19,640 22,143 23,353
Operating expense
Employee compensation and benefits 43,481 49,117 56,936
Occupancy and equipment 14,476 16,612 20,847
Marketing 2,130 2,294 2,898
Miscellaneous 13,550 18,597 19,378
Total operating expense 73,637 86,620 100,059
Income before provision for income taxes 29,400 37,587 51,757
Provision (benefit) for income taxes
Current 12,813 16,456 21,642
Deferred (1,334) (1,766) (1,967)
Total provision for income taxes 11,479 14,690 19,675
Net income $ 17,921 $ 22,897 $ 32,082
Earnings per share (1)
Basic $ 0.82 $ 1.04 $ 1.32
Diluted $ 0.81 $ 1.01 $ 1.28
Dividends declared per share $ 0.27 $ 0.28 $ 0.32
(1) All per-share data retroactively adjusted to reflect 3-for-2 stock split disbursed in the form of a stock dividend to shareholders of record on December 31, 2004
and distributed on January 14, 2005.
Certain amounts in prior year have been reclassified to conform with the December 31, 2005 presentation.

Consolidated Statements of Financial Position
December 31,
(in thousands, except share data) 2004 2005
Assets
Cash and cash equivalents:
Cash and amounts due from depository institutions $ 108,327 $ 150,657
Interest-earning deposits 41,082 39,283
Total cash and cash equivalents 149,409 189,940
Securities available for sale (at fair value):
Municipal bonds and United States government and agency securities 65,156 54,136
Mortgage-backed securities 440,473 356,337
Total securities available for sale 505,629 410,473
Securities held to maturity (at cost):
Mortgage-backed securities (fair value—$90,048 and $241,463
at December 31, 2004 and 2005, respectively) 89,167 242,497
Loans receivable, net of allowance for loan losses—$13,628 and $16,171
at December 31, 2004 and 2005, respectively 2,556,700 3,036,710
Office properties and equipment, net 83,439 91,164
Federal Home Loan Bank stock (at cost) 17,399 11,398
Foreclosed assets, net — 1,793
Accrued interest receivable 12,379 16,273
Deferred income tax asset 7,883 11,933
Goodwill 2,171 14,256
Core deposit intangibles — 6,528
Other assets 46,363 49,646
Total assets $3,470,539 $4,082,611
Liabilities and stockholders’ equity
Liabilities:
Deposits $2,814,670 $3,540,874
Other borrowed funds 46,097 54,113
Advances from Federal Home Loan Bank 250,855 92,364
Advances by borrowers for taxes and insurance 3,166 1,461
Junior subordinated debentures 53,608 53,608
Other liabilities 50,860 55,423
Total liabilities 3,219,256 3,797,843
Stockholders’ equity:
Preferred stock 2,000,000 shares authorized, none issued — —
Common stock ($.10 par value) 30,000,000 authorized shares:
outstanding 24,425,050 and 25,114,716 at December 31, 2004 and 2005, respectively 2,442 2,511
Additional paid in capital 152,398 167,197
Retained earnings—substantially restricted 105,556 129,842
Treasury stock—(at cost) 441,082 and 416,799 shares at December 31, 2004 and 2005, respectively (1,756) (1,794)
Common stock allocated to:
Employee stock ownership plan (3,909) (3,561)
Recognition and retention plan (3,045) (1,785)
Accumulated other comprehensive loss (net of applicable income taxes) (403) (7,642)
Total stockholders’ equity 251,283 284,768
Total liabilities and stockholders’ equity $3,470,539 $4,082,611
Certain amounts in prior year have been reclassified to conform with the December 31, 2005 presentation.

Executive Management
(left to right)
Joseph B. Shearouse, III, Senior Vice President of Corporate Lending; Richard D. Aldred,
Executive Vice President, Chief Financial Officer; Robert L. Fugate, D.B.A., Executive
Vice President of Financial Services/Investments; Vince A. Elhilow, Chairman, Chief Executive
Officer; Michael J. Coady, Senior Vice President of Retail/Branch Banking; Brian C. Mahoney,
Senior Vice President, Controller; Joseph C. Bova, Executive Vice President of Corporate
Services; Christopher H. Cook, Executive Vice President, Corporate Counsel; Daniel F.
Turk, Senior Vice President of Corporate Real Estate and Insurance, President of Fidelity
Realty and Appraisal Service, Inc.

Fidelity Bankshares, Inc.
Board of Directors
Officers
Vince A. Elhilow
Chairman
Chief Executive Officer
President
Keith D. Beaty
Retired Chief Executive Officer
Implant Innovations, Inc.
Paul C. Bremer
Retired Partner
Ernst & Young LLP
William H. Sned, Jr., Esq.
President
Sned & Tucker, P.A.
Donald E. Warren, M.D.
Retired Physician
Karl H. Watson
President and
Chief Operating Officer
Construction Materials
Rinker Materials
Richard D. Aldred
Executive Vice President
Chief Financial Officer
Joseph C. Bova
Executive Vice President
Corporate Services
Christopher H. Cook
Executive Vice President
Corporate Counsel
Robert L. Fugate, D.B.A.
Executive Vice President
Financial Services/Investment
Brian C. Mahoney
Senior Vice President
Controller
Elizabeth M. Cook
First Vice President
Corporate Secretary
F. Ted Brown, Jr.
Past President
Ted Brown Real Estate
Fidelity Federal Bank & Trust
Board of Directors
Vince A. Elhilow
Chairman
Chief Executive Officer
President
Joseph B. Shearouse, Jr.
Chairman Emeritus
Director Emeritus
Louis B. Bills, Sr.
Louis B. Bills Enterprises
First Vice President/
Corporate Secretary
Elizabeth M. Cook
Executive Assistant to the Chairman
Keith D. Beaty
Paul C. Bremer
F. Ted Brown, Jr.
William H. Sned, Jr., Esq.
Donald E. Warren, M.D.
Karl H. Watson
Officers
Executive Vice Presidents
Richard D. Aldred
Chief Financial Officer
Joseph C. Bova
Corporate Services
Senior Vice Presidents
John M. Ahrenholz
Commercial Lending
Douglas M. Brash
Trust Manager
Michael J. Coady
Retail/Branch Banking
Steven L. Eassa
Commercial Lending
Saeed H. Hazari
Chief Risk Officer
Robert L. Heatwole
President, Fidelity Insurance
John C. Hurley
Internal Auditor
Brian C. Mahoney
Controller
M. Anita Mixon
Chief Information Officer
Christopher H. Cook
Corporate Counsel
Robert L. Fugate, D.B.A.
Financial Services/Investment
Debra K. Schiavone
Wholesale Administrator
Shellie R. Schmidt
Director, Human Resources
Joseph B. Shearouse, III
Corporate Lending
Kenneth B. Stone
Residential Loan Production
Carol A. Stravers
Compliance Officer
Daniel F. Turk
Corporate Real Estate
and Insurance
President, Fidelity Realty
and Appraisal Service, Inc.
Edward D. Welch
Corporate Counsel
Community Reinvestment Officer

Board of Directors
(front row: left to right)
Donald E. Warren, M.D., Retired Physician; Vince A. Elhilow, Chairman,
Chief Executive Officer; Paul C. Bremer, Retired Partner, Ernst & Young LLP
(back row: left to right)
William H. Sned, Jr., Esq., President, Sned & Tucker, P.A.; Keith D. Beaty,
Retired Chief Executive Officer, Implant Innovations, Inc.; F. Ted Brown, Jr.,
Past President, Ted Brown Real Estate; Karl H. Watson, President and Chief
Operating Officer, Construction Materials, Rinker Materials

Corporate Information
© Fidelity Bankshares, Inc., 2006 Design: Financial Communications Inc. Bethesda, MD www.fcicreative.com
Annual Report on 10-K
A copy of the Company’s report on Form
10-K, as filed with the Securities and Exchange
Commission, is available without charge by
written request addressed as set forth under
Stockholder Services.
General Counsel
Pruitt & Pruitt, P.A.
3030 S. Dixie Highway, Suite 5
West Palm Beach, FL 33405
Special Counsel
Luse Gorman Pomerenk & Schick, P.C.
5335 Wisconsin Avenue, N.W., Suite 400
Washington, DC 20015
Independent Registered
Public Accounting Firm
Deloitte & Touche LLP
1645 Palm Beach Lakes Blvd., Suite 900
West Palm Beach, FL 33401
Stockholder Services &
Dividend Reinvestment Plan
Fidelity Federal Bank & Trust
Cynthia M. Pilloni
Assistant Vice President
205 Datura Street
West Palm Beach, FL 33401
(561) 803-9809
Transfer Agent
American Stock Transfer & Trust Company
59 Maiden Lane, Plaza Level
New York, NY 10038
(800) 937-5449
Stock Price Information
Fidelity Bankshares, Inc. common stock is
traded on the Nasdaq National Market under the
symbol “FFFL.” Newspaper stock tables list the
holding company as “FidelBsh.” The common
stock has been trading since January 7, 1994.
Electronic Communications
News releases issued through PR Newswire
are available through the “Company News”
section on www.prnewswire.com. News
releases and other company information are
also available at www.hawkassociates.com/fffl/
Website
www.fidelityfederal.com
www.fidelitybanksharesinc.com
News releases and company information are
available on these websites.
Investor Relations
Vince A. Elhilow
Chairman and CEO
Richard D. Aldred
Executive Vice President and CFO
Elizabeth M. Cook
First Vice President and Corporate Secretary
Fidelity Federal Bank & Trust
205 Datura Street
West Palm Beach, FL 33401
(561) 803-9900
Investor Relations Firm
Hawk Associates Inc.
227 Atlantic Boulevard
Key Largo, FL 33037
(305) 451-1888
Annual Meeting
April 18, 2006, 10:00 a.m. (EDT)
Crowne Plaza West Palm Beach Hotel
1601 Belvedere Road
West Palm Beach, FL 33406
Stockholder Information (2)
Quarter Ended 3/31/04 6/30/04 9/30/04 12/31/04 3/31/05 6/30/05 9/30/05 12/31/05
Stock Price
High $25.63 $24.73 $25.87 $28.85 $28.85 $26.98 $33.07 $34.20
Low $20.83 $20.41 $22.27 $24.24 $22.35 $22.27 $26.21 $26.25
Dividends Declared $ 0.07 $ 0.07 $ 0.07 $ 0.08 $ 0.08 $ 0.08 $ 0.08 $ 0.08
(2) Adjusted for 3-for-2 stock split, in the form of a stock dividend, to stockholders of record on December 31, 2004, distributed on January 14, 2005.
Forward-Looking Statement
This report contains certain “forward-looking statements,” which may be identified by the use of such words as “believe,” “expect,” “intend,” “anticipate,” “should,” “planned,” “estimated”
and “potential.” Examples of forward-looking statements include, but are not limited to, estimates with respect to our financial condition, results of operations and business that are
subject to various factors, which could cause actual results to differ materially from these estimates and most other statements that are not historical in nature. These factors include,
but are not limited to, general and local economic conditions, changes in interest rates, deposit flows, demand for mortgage and other loans, real estate values, and competition;
changes in accounting principles, policies, or guidelines; changes in legislation or regulations; and other economic, competitive, governmental, regulatory, and technological factors
affecting our operations, pricing, products and services.

Corporate Offices 205 Datura Street West Palm Beach, FL 33401 (561) 803-9900