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 12.



	For the Three Months Ended September 30				For the Nine Months Ended September 30
(In thousands, except per share data)	2018		2017		2018		2017
Basic income per common share:
Net income attributable to Commerce Bancshares, Inc.	$	112,576	$	74,564	$	323,890	$	225,028
Less preferred stock dividends	2,250		2,250		6,750		6,750
Net income available to common shareholders	110,326		72,314		317,140		218,278
Less income allocated to nonvested restricted stock	1,161		862		3,421		2,750
Net income allocated to common stock	$	109,165	$	71,452	$	313,719	$	215,528
Weighted average common shares outstanding	105,608		105,628		105,643		105,534
Basic income per common share	$	1.03	$	.68	$	2.97	$	2.04
Diluted income per common share:
Net income available to common shareholders	$	110,326	$	72,314	$	317,140	$	218,278
Less income allocated to nonvested restricted stock	1,159		860		3,413		2,743
Net income allocated to common stock	$	109,167	$	71,454	$	313,727	$	215,535
Weighted average common shares outstanding	105,609		105,628		105,643		105,534
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	353		353		343		377
Weighted average diluted common shares outstanding	105,962		105,981		105,986		105,911
Diluted income per common share	$	1.03	$	.67	$	2.96	$	2.03

Unexercised stock appreciation rights of 212 thousand and 146 thousand were excluded in the computation of diluted income per common share for the nine month periods ended September 30, 2018 and 2017, respectively, 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 2017.