Common Stock

On December 16, 2013, the Company distributed a 5% stock dividend on its $5 par common stock for the twentieth consecutive year. All per share data in this report has been restated to reflect the stock dividend.

Basic income per share is computed by dividing income available to common shareholders by the weighted average number of common shares outstanding during the year. Diluted income per share gives effect to all dilutive potential common shares that were outstanding during the year. Presented below is a summary of the components used to calculate basic and diluted income per share, which have been restated for all stock dividends.

The Company applies the two-class method of computing income per share. Under current guidance, nonvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock. The two-class method requires the calculation of separate income per share amounts for the nonvested share-based awards and for common stock. Income per share attributable to common stock is shown in the following table. Nonvested share-based awards are further discussed in Note 11 on Stock-Based Compensation.



(In thousands, except per share data)	2013		2012		2011
Basic income per common share:
Net income attributable to Commerce Bancshares, Inc.	$	260,961	$	269,329	$	256,343
Less income allocated to nonvested restricted stockholders	2,939		2,563		1,846
Net income available to common stockholders	$	258,022	$	266,766	$	254,497
Weighted average common shares outstanding	94,585		96,195		99,086
Basic income per common share	$	2.73	$	2.77	$	2.57
Diluted income per common share:
Net income attributable to Commerce Bancshares, Inc.	$	260,961	$	269,329	$	256,343
Less income allocated to nonvested restricted stockholders	2,931		2,562		1,842
Net income available to common stockholders	$	258,030	$	266,767	$	254,501
Weighted average common shares outstanding	94,585		96,195		99,086
Net effect of the assumed exercise of stock-based awards -- based on the treasury stock method using the average market price for the respective periods	398		294		362
Weighted average diluted common shares outstanding	94,983		96,489		99,448
Diluted income per common share	$	2.72	$	2.76	$	2.56

Nearly all unexercised stock options and stock appreciation rights were included in the computations of diluted income per share for the years ended December 31, 2013 and 2012. Unexercised options and rights of 1.2 million were excluded from the computation of diluted income per share for the year ended December 31, 2011, because their inclusion would have been anti-dilutive.

The table below shows activity in the outstanding shares of the Company’s common stock during the past three years. Shares in the table below are presented on an historical basis and have not been restated for the annual 5% stock dividends.



	Years Ended December 31
(In thousands)	2013		2012		2011
Shares outstanding at January 1	91,414		88,952		86,624
Issuance of stock:
Awards and sales under employee and director plans	653		837		724
5% stock dividend	4,565		4,352		4,231
Summit acquisition	1,000		—		—
Purchases of treasury stock	(1,742	)	(2,716	)	(2,622	)
Other	(9	)	(11	)	(5	)
Shares outstanding at December 31	95,881		91,414		88,952

The Company maintains a treasury stock buyback program authorized by its Board of Directors. At December 31, 2013, 3,492,265 shares were available for purchase under the current Board authorization.