Note 15 - Benefit Plans

12 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Pension and Other Postretirement Benefits Disclosure [Text Block]

NOTE

15

– BENEFIT PLANS

We have a

401

(k) benefit plan that covers substantially all of our employees. The percent of our matching contributions to the

401

(k) benefit plan is determined annually by the Board of Directors. The matching contribution had been

4.25%

since

January 1, 2014;

effective

April 1, 2018,

the matching contribution was increased to

5.00%.

Matching contributions, if made, are immediately vested. Our

2019,

2018

and

2017

matching

401

(k) contributions charged to expense were

$1.7

million,

$1.6

million and

$1.3

million, respectively.

We have a deferred compensation plan in which all persons serving on the Board of Directors

may

defer all or portions of their annual retainer and meeting fees, with distributions to be paid upon termination of service as a director or specific dates selected by the director. We also have a non-qualified deferred compensation program in which selected officers

may

defer all or portions of salary and bonus payments. The deferred amounts, totaling

$2.7

million and

$3.0

million as of

December 31, 2019

and

2018,

respectively, are categorized as other liabilities in the Consolidated Balance Sheets, and are paid interest at a rate equal to the Wall Street Journal Prime Rate. Interest expense was

$0.1

million during

2019

and

2018,

and less than

$0.1

million during

2017.

The Mercantile Bank Corporation Employee Stock Purchase Plan of

2014

is a non-compensatory plan intended to encourage full- and part-time employees of Mercantile and its subsidiaries to promote our best interests and to align employees’ interests with the interests of our shareholders by permitting employees to purchase shares of our common stock through regular payroll deductions. Shares are purchased on the last business day of each calendar quarter at a price equal to the consolidated closing bid price of our common stock reported on The Nasdaq Stock Market. A total of

250,000

shares of common stock

may

be issued under the existing plan; however, the number of shares

may

be adjusted to reflect any stock dividends and other changes in our capitalization. The number of shares issued totaled

1,507

and

1,579

in

2019

and

2018,

respectively. As of

December 31, 2019,

there were approximately

241,000

shares available under our current plan.