Item 2.02. Results of Operations and Financial Condition

The following information is furnished under Item 2.02 - "Results of Operations and Financial Condition" and such information, including the exhibits attached hereto, shall not be deemed "filed" for any purpose, including for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that Section. The information in this Current Report on Form 8-K shall not be deemed incorporated by reference into any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

On July 16, 2009 Merchants Bancshares, Inc. (the "Company") issued a press release announcing that its Board of Directors had declared a quarterly dividend of 28 cents per share on the Company's common stock. A copy of that press release, which is incorporated herein by reference, is included as Exhibit 99.1 to this Current Report on Form 8-K.

Item 8.01. Other Events

In addition, Merchants announced on July 16, 2009 that it was added to the broad-market Russell 3000Ò Index when Russell Investments reconstituted its comprehensive set of U.S. and global equity indexes on June 26, 2009. Annual reconstitution of Russell's U.S. indexes captures the 4,000 largest U.S. stocks as of the end of May, ranking them by total market capitalization. Merchants' membership in the Russell 3000, which remains in place for one year, means automatic inclusion in the Russell 2000Ò Index, a Russell 3000 subset representing small-cap securities.

Item 9.01. Financial Statements and Exhibits

(c).

The following exhibits are included with this Report:

Exhibit No. Description

99.1 Press Release dated July 16, 2009