Edwin W. Clift, chairman and chief executive officer of Merrill Merchants Bancshares, has announced that the bank had net income of $1.4 million for the three months ending March 31. This represented a 9 percent increase over the same period last year. Diluted earnings per share were 38 cents, also a 9 percent increase over last year. At the end of the quarter, loans totaled $323.5 million and deposits totaled $332.8 million.