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: DAVIS JEFFREY L (Director)

Derivative Transactions

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

Holdings (Non-Derivative)

Security	Shares	Ownership
Common Stock	13995	Direct
Common Stock	858	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Phantom Stock (Deferred Compensation)	$		Common Stock (52585.3177)	52585.3177	Direct

Footnotes

F1: The reporting person no longer has a reportable beneficial ownership in the following shares previously included in the reporting person's ownership reports: 4,707 held in trust and 493 shares held by the reporting person's son.

F2: 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.

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: These units of phantom stock were originally included in Table I and have been moved to Table II for future reporting.