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

Jan 27, 2017

SEC Form 5 — Annual Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM, INC. (CBU)
CIK: 0000723188
Period of Report: 2016-12-31

Reporting Person: MICHAEL R KALLET (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2016-11-17	Common Stock	G	21000	—	Disposed	21603	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	50343.6465	Indirect
Common Stock	10250.9263	Indirect
Common Stock	5606	Indirect
Common Stock	8759	Indirect
Common Stock	1988	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Phantom Stock (Deferred Compensation)	$		Common Stock (1233.1522)	1233.1522	Direct

Footnotes

F1: 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.

F2: Includes 10.0625 units of phantom stock acquired on January 10, 2017 under the Deferred Compensation Plan's dividend reinvestment feature.