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

Jan 3, 2017

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM, INC. (CBU)
CIK: 0000723188
Period of Report: 2017-01-02

Reporting Person: Bolus Mark J. (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2017-01-02	Common Stock	M	5922.2621	—	Acquired	69677.9191	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2017-01-02	Phantom Stock (Deferred Compensation)	$	M	5922.2621	Disposed		Common Stock (5922.2621)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	6126.638	Indirect
Common Stock	190.299	Indirect
Common Stock	190.299	Indirect
Common Stock	190.299	Indirect
Common Stock	190.299	Indirect
Common Stock	4437.949	Indirect
Common Stock	4437.949	Indirect
Common Stock	4437.949	Indirect
Common Stock	4437.949	Indirect

Footnotes

F1: On January 2, 2017, the reporting person's phantom stock units were settled for an equal number of shares of Community Bank System, Inc. common stock.

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.