Common Stock

3 Months Ended

Mar. 31, 2020

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 March 31
(In thousands, except per share data)	2020		2019
Basic income per common share:
Net income attributable to Commerce Bancshares, Inc.	$	51,857	$	97,138
Less preferred stock dividends	2,250		2,250
Net income available to common shareholders	49,607		94,888
Less income allocated to nonvested restricted stock	470		944
Net income allocated to common stock	$	49,137	$	93,944
Weighted average common shares outstanding	111,118		115,511
Basic income per common share	$	.44	$	.81
Diluted income per common share:
Net income available to common shareholders	$	49,607	$	94,888
Less income allocated to nonvested restricted stock	469		943
Net income allocated to common stock	$	49,138	$	93,945
Weighted average common shares outstanding	111,118		115,511
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	258		305
Weighted average diluted common shares outstanding	111,376		115,816
Diluted income per common share	$	.44	$	.81

Unexercised stock appreciation rights of 229 thousand and 296 thousand for the three month periods ended March 31, 2020 and 2019, respectively, were excluded from the computation of diluted income per common share because their inclusion would have been anti-dilutive.

* All prior year share and per share amounts in this note have been restated for the 5% common stock dividend distributed in December 2019.