Merrill Merchants Bancshares Inc., the parent company of Merrill Bank, announced Friday that it earned a record net income of $1.5 million over the months of July, August and September. The earnings represent an increase of 18 percent over its earnings from the same quarter in 2004, the company indicated in a press release. The company’s diluted earnings per share of 42 cents for the third quarter of 2005 were up from its 36 cents per share, third-quarter earnings last year. The firm’s reported net income for the first nine months of 2005 was $4.1 million. Merrill Merchants Bancshares’ consolidated assets were $408 million as of Sept. 30, which represents an increase of $41.2 million – or 11 percent – from the same date a year ago. Since the end of September 2004, the company’s total loans grew $34.8 million, or 13 percent, and its deposits increased 11 percent, or $31.3 million.