Common Stock

6 Months Ended

Jun. 30, 2019

Common Stock *

Presented below is a summary of the components used to calculate basic and diluted income per share. The Company applies the two-class method of computing income per share, as 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 table below. Nonvested share-based awards are further discussed in Note 13.



	For the Three Months Ended June 30				For the Six Months Ended June 30
(In thousands, except per share data)	2019		2018		2019		2018
Basic income per common share:
Net income attributable to Commerce Bancshares, Inc.	$	107,971	$	110,330	$	205,109	$	211,314
Less preferred stock dividends	2,250		2,250		4,500		4,500
Net income available to common shareholders	105,721		108,080		200,609		206,814
Less income allocated to nonvested restricted stock	1,012		1,139		1,956		2,260
Net income allocated to common stock	$	104,709	$	106,941	$	198,653	$	204,554
Weighted average common shares outstanding	109,487		110,970		109,747		110,943
Basic income per common share	$	.96	$	.96	$	1.81	$	1.84
Diluted income per common share:
Net income available to common shareholders	$	105,721	$	108,080	$	200,609	$	206,814
Less income allocated to nonvested restricted stock	1,009		1,136		1,952		2,254
Net income allocated to common stock	$	104,712	$	106,944	$	198,657	$	204,560
Weighted average common shares outstanding	109,487		110,970		109,747		110,943
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	265		361		278		355
Weighted average diluted common shares outstanding	109,752		111,331		110,025		111,298
Diluted income per common share	$	.96	$	.96	$	1.81	$	1.84

Unexercised stock appreciation rights of 322 thousand and 308 thousand were excluded from the computation of diluted income per common share for the six month periods ended June 30, 2019 and 2018, respectively, because their inclusion would have been anti-dilutive.

In the Annual Meeting of the Shareholders, held on April 17, 2019, a proposal to increase the shares of Company common stock authorized for issuance under its articles of incorporation was approved. The approval increased the authorized shares from 120,000,000 to 140,000,000.

* All prior year share and per share amounts in this note have been restated for the 5% common stock dividend distributed in December 2018.