BANGOR – Merrill Merchants Bancshares Inc. (Nasdaq: MERB) on Friday reported net income of $1.2 million for the three months ended Sept. 30, a 12 percent increase over the same period last year, according to Edwin N. Clift, chairman and chief executive officer.

The company reported diluted earnings per share of 37 cents for the third quarter of 2004, a 16 percent increase over 2003’s third quarter earnings per share of 32 cents.

The company reported net income of $3.6 million or earnings per share of $1.04 on a fully diluted basis for the nine months ended Sept. 30, compared to $3.2 million or earnings per share of 92 cents for the same period last year.