COMMUNITY FINANCIAL SYSTEM, INC. — Director's Dealing 2015

Mar 20, 2015

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM, INC. (CBU)
CIK: 0000723188
Period of Report: 2015-03-18

Reporting Person: Fesette Neil E. (Director)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2015-03-18	Phantom Stock (Deferred Stock Units)	$	A	850	Acquired		Common Stock (850)	Direct
2015-03-19	Phantom Stock (Deferred Compensation)	$	A	223.5915	Acquired		Common Stock (223.5915)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	101.784	Direct

Footnotes

F1: Includes 0.73, 0.775, 0.887 and 0.837 shares acquired on April 10, 2014, July 10, 2014, October 10, 2014, and January 9, 2015, respectively, pursuant to the Community Bank System, Inc. Dividend Reinvestment Plan.

F2: The reporting person has received deferred stock units under the Community Bank System, Inc. 2014 Long-Term Incentive Plan. Each phantom stock unit which represents a deferred stock unit is the economic equivalent of one share of Community Bank System, Inc. common stock and will be settled in common stock at a predetermined date.

F3: 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.

F4: Includes 57.6277 units of phantom stock acquired on January 9, 2015 under the Deferred Compensation Plan's dividend reinvestment feature.