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

Mar 18, 2016

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM, INC. (CBU)
CIK: 0000723188
Period of Report: 2016-03-16

Reporting Person: ACE BRIAN R (Director)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2016-03-16	Phantom Stock (Deferred Stock Units)	$	A	877	Acquired		Common Stock (877)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	46458	Direct
Common Stock	130	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Phantom Stock (Deferred Compensation)	$		Common Stock (22745.6296)	22745.6296	Direct

Footnotes

F1: The reporting person's direct holdings were reduced by 3,673.5875 shares to correct an administrative error in the number of shares beneficially owned.

F2: Includes 4.161 shares acquired in April, July and October 2015 and January 2016 under the Community Bank System, Inc. Dividend Reinvestment Plan.

F3: 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.

F4: 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.

F5: Includes 215.4654 units of phantom stock acquired on January 11, 2016 under the Deferred Compensation Plan's dividend reinvestment feature.