Edwin N. Clift, chairman and chief executive officer of Merrill Merchants Bancshares Inc., the parent company of Merrill Merchants Bank, announced that the company has declared a cash dividend of 18 cents a share on the company’s common stock for the third quarter of 2006. This is an increase of 16 percent over last year’s third-quarter dividend. The cash dividend will be payable to all shareholders of record as of Oct. 13, 2006, and will be paid Oct. 31, 2006. Merrill Merchants operates at 11 locations in central and eastern Maine.