COMMUNITY FINANCIAL SYSTEM, INC. — Director's Dealing 2017

Jun 13, 2017

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM, INC. (CBU)
CIK: 0000723188
Period of Report: 2017-06-12

Reporting Person: Mucenski Edward S. (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2017-06-12	Common Stock	M	850	$27.36	Acquired	3185.98	Direct
2017-06-12	Common Stock	M	2150	$28.78	Acquired	5335.98	Direct
2017-06-12	Common Stock	S	3000	$57.9612	Disposed	2335.98	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2017-06-12	Stock Option	$27.36	M	850	Disposed	2021-01-19	Common Stock (850)	Direct
2017-06-12	Stock Option	$28.78	M	2150	Disposed	2022-03-21	Common Stock (2150)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	7483.079	Indirect
Common Stock	1526.47	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Phantom Stock (Deferred Compensation)	$		Common Stock (9052.233)	9052.233	Direct

Footnotes

F1: The price reported in Column 4 is a weighted average price. These shares were sold in multiple transactions at prices ranging from $57.925 to $57.99, inclusive. The reporting person undertakes to provide Community Bank System, Inc., any security holder of Community Bank System, Inc. or the staff of the Securities and Exchange Commission, upon request, full information regarding the number of shares sold at each separate price within the range set forth in this footnote.

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.

F3: Includes 66.8622 units of phantom stock acquired on April 10, 2017 under the Deferred Compensation Plan's dividend reinvestment feature.