COMMUNITY FINANCIAL SYSTEM, INC. — Director's Dealing 2011

Jan 21, 2011

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM INC (CBU)
CIK: 0000723188
Period of Report: 2011-01-19

Reporting Person: Parente John (Director)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2011-01-19	Stock Option	$27.36	A	3850	Acquired	2021-01-19	Common Stock (3850)	Direct
2011-01-10	Phantom Stock (Deferred Compensation)	$	J	15.5948	Acquired		Common Stock (15.5948)	Direct

Footnotes

F1: Phantom stock units were acquired on January 10, 2011 under the Deferred Compensation Plan's dividend reinvestment feature. Each unit of phantom stock is the economic equivalent of one share of Community Bank System, Inc. common stock. The units of phantom stock relating to the Deferred Compensation Plan will be settled in Community Bank System, Inc. common stock at future dates selected by the reporting person.