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

Mar 17, 2017

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM, INC. (CBU)
CIK: 0000723188
Period of Report: 2017-03-15

Reporting Person: Mucenski Edward S. (Director)

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2017-03-15	Phantom Stock (Deferred Stock Units)	$	A	553	Acquired		Common Stock (553)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	2335.98	Direct
Common Stock	1526.47	Indirect
Common Stock	7483.079	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Phantom Stock (Deferred Compensation)	$		Common Stock (8761.809)	8761.809	Direct

Footnotes

F1: Includes 64.12 shares acquired pursuant to the Community Bank System, Inc. Dividend Reinvestment Plan.

F2: Includes 41.9 shares acquired pursuant to the Community Bank System, Inc. Dividend Reinvestment Plan.

F3: Includes 166.1004 shares acquired 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 54.9087 units of phantom stock acquired on January 10, 2017 under the Deferred Compensation Plan's dividend reinvestment feature.