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

Jan 5, 2015

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM, INC. (CBU)
CIK: 0000723188
Period of Report: 2015-01-02

Reporting Person: ACE BRIAN R (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2015-01-02	Common Stock	M	2719.6149	—	Acquired	23803.6149	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2015-01-02	Phantom Stock (Deferred Compensation)	$	M	2719.6149	Disposed		Common Stock (2719.6149)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	16957	Indirect
Common Stock	121	Indirect

Footnotes

F1: On January 2, 2015, the reporting person's phantom stock units were settled for an equal number of shares of Community Bank System, Inc. common stock.

F2: 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.