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: Pecor Raymond C III (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	5837.104	Direct
Common Stock	6392	Indirect

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Phantom Stock (Deferred Compensation)	$		Common Stock (8005.7625)	8005.7625	Direct

Footnotes

F1: Includes 31.239, 34.988, and 35.877 shares acquired on July 10, 2017, October 10, 2017, and January 10, 2018, respectively, pursuant to the Community Bank System, Inc. Dividend Reinvestment Plan.

F2: The reporting person disclaims beneficial ownership of these securities, and the inclusion of these shares in this report shall not be deemed an admission of beneficial ownership of all of the reported shares for purposes of Section 16 or any other purpose.

F3: 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.

F4: 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.

F5: These units of phantom stock were originally included in Table I of the Form 3 filed with the SEC on May 19, 2017 and have been moved to Table II for future reporting.