8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

______________________________

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

______________________________

Date of report (Date of earliest event reported): March 20, 2007

Merrill Merchants Bancshares, Inc.

(Exact name of registrant as specified in its charter)

Maine (State or other jurisdiction
of incorporation) 000-24715 (Commission File Number) 01-0471507 (IRS Employer
Identification No.)

201 Main Street, Bangor, Maine 04401

(Address of principal executive offices, including zip code)

Registrant's telephone number, including area code: (207) 942-4800

Not Applicable

(Former name or former address, if changed since 1^st report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 8.01Other Events

On March 20, 2007, Merrill Merchants Bancshares, Inc. issued a press release announcing a cash dividend of $.20 per share on the common stock payable April 30, 2007 to shareholders of record on April 13, 2007. The press release is attached as Exhibit 99.1.

Item 9.01Financial Statements and Exhibits.

(c) Exhibit

Exhibit 99.1 - Press Release dated March 20, 2007

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Merrill Merchants Bancshares, Inc.
By:	/s/ Deborah A. Jordan
	Chief Financial Officer

Dated: March 20, 2007

-2-

EX-99.1

EXHIBIT 99.1

DIVIDEND PRESS RELEASE ON MARCH 20, 2007

Merrill Merchants Bancshares, Inc. Declares an Increase in Cash Dividend of 18%

Bangor, Maine, March 20, 2007: Edwin N. Clift, Chairman and Chief Executive Officer of Merrill Merchants Bancshares, Inc. (the "Company") (NASDAQ:MERB), the parent company of Merrill Merchants Bank, announced that the Company has declared a cash dividend of $.20 per share on the Company’s common stock for the first quarter of 2007. This is an increase of $.03 or 18% over last year’s first quarter dividend and an increase of $.01 over the previous quarter’s dividend. The cash dividend will be payable to all shareholders of record as of April 13, 2007, and will be paid on April 30, 2007.

The Company’s subsidiary, Merrill Merchants Bank is headquartered in Bangor, Maine. Merrill Merchants Bank provides consumer, commercial, and trust and investment services through its eleven locations in Central and Eastern Maine. The Bank is a “Preferred Lender” of the Small Business Administration.

For further information contact:

Edwin N. Clift, Chairman and Chief Executive Officer (eclift@merrillmerchants.com)

Deborah A. Jordan, Chief Financial Officer (djordan@merrillmerchants.com)

Merrill Merchants Bancshares, Inc.

www.merrillmerchants.com

(207) 942-4800