Common Stock

3 Months Ended

Mar. 31, 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 March 31
(In thousands, except per share data)		2023		2022
Basic income per common share:
Net income attributable to Commerce Bancshares, Inc.		$	119,452	$	118,154
Less income allocated to nonvested restricted stock		1,056		1,070
Net income allocated to common stock		$	118,396	$	117,084
Weighted average common shares outstanding		124,004		126,341
Basic income per common share		$	.95	$	.92
Diluted income per common share:
Net income attributable to Commerce Bancshares, Inc.		$	119,452	$	118,154
Less income allocated to nonvested restricted stock		1,054		1,068
Net income allocated to common stock		$	118,398	$	117,086
Weighted average common shares outstanding		124,004		126,341

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		255		306
Weighted average diluted common shares outstanding		124,259		126,647
Diluted income per common share		$	.95	$	.92

Unexercised stock appreciation rights of 216 thousand and 125 thousand for the three month periods ended March 31, 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.