Common Stock

6 Months Ended

Jun. 30, 2023

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 pay nonforfeitable common stock 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)	2023		2022		2023		2022
Basic income per common share:
Net income attributable to Commerce Bancshares, Inc.	$	127,789	$	115,794	$	247,241	$	233,948
Less income allocated to nonvested restricted stock	1,128		1,052		2,184		2,122
Net income allocated to common stock	$	126,661	$	114,742	$	245,057	$	231,826
Weighted average common shares outstanding	123,885		125,637		123,944		125,987
Basic income per common share	$	1.03	$	.92	$	1.98	$	1.84
Diluted income per common share:
Net income attributable to Commerce Bancshares, Inc.	$	127,789	$	115,794	$	247,241	$	233,948
Less income allocated to nonvested restricted stock	1,128		1,050		2,182		2,118
Net income allocated to common stock	$	126,661	$	114,744	$	245,059	$	231,830
Weighted average common shares outstanding	123,885		125,637		123,944		125,987

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	122		279		188		293
Weighted average diluted common shares outstanding	124,007		125,916		124,132		126,280
Diluted income per common share	$	1.02	$	.92	$	1.97	$	1.84

Unexercised stock appreciation rights of 427 thousand and 177 thousand for the three month periods ended June 30, 2023 and 2022, respectively, and 264 thousand and 151 thousand for the six month periods ended June 30, 2023 and 2022, respectively, were excluded from the computation of diluted income per common share because their inclusion would have been anti-dilutive.

In the Annual Meeting of the Shareholders, held on April 19, 2023, a proposal to increase the shares of the Company's common stock authorized for issuance under its articles of incorporation was approved. This approval increased the authorized shares from 140,000,000 to 190,000,000.

* All prior year share and per share amounts in this note have been restated for the 5% common stock dividend distributed in December 2022.