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: Mucenski Edward S. (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	236.6692	Acquired		Common Stock (236.6692)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	2271.86	Direct
Common Stock	1484.57	Indirect
Common Stock	7316.9786	Indirect

Footnotes

F1: Includes 18.44 shares acquired on January 11, 2016 pursuant to the Community Bank System, Inc. Dividend Reinvestment Plan.

F2: Includes 12.05 shares acquired on January 11, 2016 pursuant to the Community Bank System, Inc. Dividend Reinvestment Plan.

F3: Includes 59.389 shares acquired on January 11, 2016 pursuant to the Community Bank System, Inc. Dividend Reinvestment Plan.

F4: 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.

F5: 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.

F6: Includes 68.083 units of phantom stock acquired on January 11, 2016 under the Deferred Compensation Plan's dividend reinvestment feature.