Shore Bancshares Inc. (NASDAQ: SHBI), the holding company for Shore United Bank, N.A., announced its financial results for the second quarter of 2025. The company reported a net income of $15.5 million, or $0.46 per diluted common share, an increase from $13.8 million, or $0.41 per diluted common share, in the first quarter of 2025, and $11.2 million, or $0.34 per diluted common share, in the second quarter of 2024. Net interest income for the second quarter of 2025 rose to $47.3 million, up from $46.0 million in the previous quarter. The net interest margin $(NIM)$ expanded by 11 basis points to 3.35% from 3.24% in the first quarter of 2025. Excluding accretion, the NIM increased from 3.02% to 3.10%. This growth was attributed to modest loan growth, higher accelerated accretion income, and loan and securities repricing, alongside a reduction in deposit costs. The efficiency ratio improved to 60.83% in the second quarter of 2025 from 63.64% in the prior quarter and 66.23% in the same period of the previous year. The non-GAAP efficiency ratio, which excludes amortization, was 56.73% for the quarter, reflecting continued improvements in operational efficiency. Shore Bancshares also reported an increase in book value per share, reaching $16.94 as of June 30, 2025, compared to $16.55 at the end of the first quarter of 2025 and $15.74 as of June 30, 2024. Looking ahead, the company anticipates that ongoing expense management and technology investments will continue to enhance operating leverage. While loan growth remains limited, expected increases in asset yields are projected to support margins for the remainder of 2025.