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: Fesette Neil E. (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
2016-03-17	Phantom Stock (Deferred Compensation)	$	A	196.4194	Acquired		Common Stock (196.4194)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	105.128	Direct

Footnotes

F1: Includes 0.868, 0.794, 0.829 and 0.853 units acquired on April 10, 2015, July 10, 2015, October 9, 2015, and January 11, 2016 respectively, pursuant to the Deferred Compensation Plan's dividend reinvestment feature.

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 72.6901 units of phantom stock acquired on January 11, 2016 under the Deferred Compensation Plan's dividend reinvestment feature.