COMMUNITY FINANCIAL SYSTEM, INC. — Director's Dealing 2018

Jul 2, 2018

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM, INC. (CBU)
CIK: 0000723188
Period of Report: 2018-06-27

Reporting Person: Bolus Mark J. (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2018-06-27	Common Stock	S	3693	$60.385	Disposed	66758.7447	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2018-06-28	Phantom Stock (Deferred Compensation)	$	A	291.7716	Acquired		Common Stock (291.7716)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	6411.23	Indirect
Common Stock	194.205	Indirect
Common Stock	194.205	Indirect
Common Stock	194.205	Indirect
Common Stock	194.205	Indirect
Common Stock	4685.885	Indirect
Common Stock	4685.885	Indirect
Common Stock	4687.375	Indirect
Common Stock	4687.375	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Phantom Stock (Deferred Stock Units)	$		Common Stock (1532.3771)	1532.3771	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 $59.61 to $61.10, 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: The number of units of phantom stock reflects the current balance, including dividends acquired under the Deferred Compensation Plan's dividend reinvestment feature.

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: The number of units of phantom stock reflects the current balance, including dividends acquired under the Community Bank System, Inc. 2014 Long-Term Incentive Plan's dividend reinvestment feature.