COMMUNITY FINANCIAL SYSTEM, INC. — Director's Dealing 2016

Jul 27, 2016

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM, INC. (CBU)
CIK: 0000723188
Period of Report: 2016-07-26

Reporting Person: ACE BRIAN R (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2016-07-26	Common Stock	M	3817	$22.94	Acquired	50275	Direct
2016-07-26	Common Stock	S	3817	$43.40	Disposed	46458	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2016-07-26	Stock Option	$22.94	M	3817	Disposed	2017-01-17	Common Stock (3817)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	130	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Phantom Stock (Deferred Compensation)	$		Common Stock (23123.7399)	23123.7399	Direct

Footnotes

F1: 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.

F2: Includes 195.3299 and 182.7804 units acquired on April 11, 2016 and July 11, 2016 respectively, pursuant to the Deferred Compensation Plan's dividend reinvestment feature.