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: Fesette Neil E. (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	110.675	Direct

Holdings (Derivative)

Security	Exercise Price	Expiration	Underlying	Shares	Ownership
Phantom Stock (Deferred Compensation)	$		Common Stock (9417.5551)	9417.5551	Direct

Footnotes

F1: Includes 2.616 shares acquired pursuant to the Community Bank System, Inc. Dividend Reinvestment Plan

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: Includes 208.5679 units of phantom stock acquired under the Deferred Compensation Plan's dividend reinvestment feature.