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)	2014		2013
Basic income per common share:
Net income attributable to Commerce Bancshares, Inc.	$	64,313	$	61,017
Less income allocated to nonvested restricted stock	802		594
Net income allocated to common stock	$	63,511	$	60,423
Weighted average common shares outstanding	94,773		94,722
Basic income per common share	$	.67	$	.64
Diluted income per common share:
Net income attributable to Commerce Bancshares, Inc.	$	64,313	$	61,017
Less income allocated to nonvested restricted stock	799		593
Net income allocated to common stock	$	63,514	$	60,424
Weighted average common shares outstanding	94,773		94,722
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	421		244
Weighted average diluted common shares outstanding	95,194		94,966
Diluted income per common share	$	.67	$	.63

Unexercised stock options and stock appreciation rights of 90 thousand were excluded in the computation of diluted income per share for the three month period ended March 31, 2014 because their inclusion would have been anti-dilutive. All unexercised stock options and rights were included in the computation of diluted income per share for the three month period ended March 31, 2013.

In the Annual Meeting of the Shareholders, held on April 16, 2014, a proposal to increase the shares of Company common stock authorized for issuance under its articles of incorporation was approved. This approval increased the authorized shares from 100,000,000 to 120,000,000.