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

Mar 22, 2018

SEC Form 4 — Statement of Changes in Beneficial Ownership

Issuer: COMMUNITY BANK SYSTEM, INC. (CBU)
CIK: 0000723188
Period of Report: 2018-03-20

Reporting Person: STEELE SALLY A (Director)

Non-Derivative Transactions

Date	Security	Code	Shares	Price	A/D	Holdings After	Ownership
2018-03-20	Common Stock	M	562.9276	—	Acquired	52943.9276	Direct

Derivative Transactions

Date	Security	Exercise Price	Code	Shares	A/D	Expiration	Underlying	Ownership
2018-03-20	Phantom Stock (Deferred Compensation)	$	M	562.9276	Disposed		Common Stock (562.9276)	Direct
2018-03-20	Phantom Stock (Deferred Stock Units)	$	A	611	Acquired		Common Stock (611)	Direct

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	1967	Indirect

Footnotes

F1: On March 20, 2018, the reporting person's phantom stock units were settled for an equal number of shares of Community Bank System, Inc. common stock.

F2: The reporting person's beneficial ownership number has been reduced by 871.4214 shares to correct an error of reporting a gift of approximately 868 shares in the Form 4 filed with the SEC on March 16, 2017.

F3: 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.

F4: Includes 287.617 units of phantom stock acquired under the Deferred Compensation Plan's dividend reinvestment feature.

F5: 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.